Assistance and representation in tax litigation in Romania
The relationship between taxpayers and tax authorities is often marked by procedural complexities and measures open to interpretation. Abusive measures and unlawfully issued tax administrative acts must be challenged by taxpayers to avoid additional tax burdens and inequitable treatment.
In most cases, the annulment of a tax administrative act also requires court intervention in addition to administrative procedures, leading to a tax litigation case.
At Blaj Law, we offer assistance and representation in tax litigation cases related to the annulment of tax administrative acts, as well as other tax disputes, ensuring the protection of our clients’ rights and interests in their dealings with tax authorities and in court.
Administrative Fiscal Litigation in Romania
Administrative tax litigation is a subcategory of administrative litigation, referring to disputes arising in connection with administrative-tax relations, meaning cases that involve a tax administrative act or the unjustified refusal of tax authorities to resolve a request. The framework for tax litigation is set by Law no. 554/2004, as the general law in the matter, and by the Tax Procedure Code.
Actions seeking the annulment of tax debt instruments, tax assessment decisions, and other administrative fiscal acts must first undergo the administrative stage required by the Tax Procedure Code. This involves filing an appeal against the tax administrative act, addressed to the issuing authority.
According to Article 268(1) of the Tax Procedure Code: “A challenge may be lodged against a tax debt instrument, as well as against other tax administrative acts, in accordance with this title. The appeal is an administrative remedy and does not eliminate the right to legal action for those who consider themselves harmed in their rights by a tax administrative act.”
Until the appeal is resolved, the taxpayer who received the tax administrative act may request the court to suspend its enforcement, after posting a security deposit calculated based on the value of the contested claim.
The resolution of the appeal is communicated to the appellant, who may then challenge the resolution decision before the administrative litigation court by filing an annulment request.
It is important to note that in such litigation, the appellant may invoke additional grounds for illegality beyond those initially raised in the administrative appeal. When a court annuls a tax administrative act, the consequences are significant. Besides eliminating the tax liability established by the annulled act, the taxpayer may also request a refund of amounts already paid under the annulled act, including interest and late payment penalties.
However, tax administrative litigation is not limited to challenging the rejection of an administrative appeal; it may also involve cases where tax authorities fail to resolve an appeal within six months of its submission, as per Article 281(5) of the Tax Procedure Code. After the six-month period, the taxpayer may directly approach the court to seek annulment of the act. It is important to note that the calculation of this deadline excludes periods outlined in Article 77(2) of the Tax Procedure Code, when additional evidence is required, and any periods during which the appeal resolution process is suspended.
Additional Tax Litigation Matters in Romania
Beyond the above cases, other disputes may arise in tax law, including disputes concerning the enforcement of tax debts.
The Role of an Attorney in Tax Litigation
Legal assistance is highly recommended in tax litigation cases due to the complexity of procedures, the rapid evolution of tax legislation, and the creative ways tax authorities interpret and apply the law. Abusive state practices aimed at increasing budget revenues can, if left unchecked, threaten the survival of businesses in the market.
The Blaj Law team of lawyers supports taxpayers even before litigation reaches the courts by analyzing tax documentation and interpreting the legal norms upon which the tax administrative act is based. If litigation does proceed to court, we handle the drafting of the lawsuit, preparation of legal arguments, and assistance and representation of clients at hearings.
More specifically, our services in tax litigation include assisting and representing clients in:
- Procedures for contesting tax administrative acts;
- Procedures for contesting precautionary measures imposed by tax authorities;
- Tax enforcement appeals;
- Requests for the suspension of tax administrative acts.
If you are facing a tax dispute and need professional legal representation, the Blaj Law team is ready to provide expert assistance to protect your rights and ensure fair treatment in dealings with tax authorities and the courts.
