Tax control will become larger, more efficient, faster and targeted at specific risk areas thanks to the digitalization of tax administration and the introduction of near-real-time tax and tax reporting. Paper audits or “cabinet audits” will be more frequent, given that they must meet the target of 60% of total tax audits, according to the National Plan for Recovery and Resilience (PNRR). This is a fundamental reform of the tax audit system, and the consequences for taxpayers will be significant. Will these changes bring increased vulnerability or additional benefits for companies? These aspects were analyzed at the 19th Annual PwC Tax Conference in Romania during a debate that presented the pros and cons of the impact of these changes on taxpayers.
Dan Daskalou, partner at D&B David and Baias: Our discussion summarized the current state of fiscal control and the future impact of its recent reform on procedural and substantive fiscal aspects (VAT, transfer pricing and direct taxes). This is due to the fact that documentary verification – a “blitz” form of fiscal control with few guarantees and certainties for taxpayers – will be generalized. The long-awaited transparency of the risk analysis will not happen immediately, and the implementation of its results for the taxpayer is uncertain.
Fiscal legislation issues will not be much different from today, fiscal control will be more efficient and transparent, but care about documentation remains so that there are no discrepancies between accounting and declarations, especially in the context of expanding digitalization. Transparency and access to information mean that the new type of control will be more focused on areas of risk, but also likely to uncover many more tax problems. There have been a number of reclassifications in the income tax area, and in the income tax area, fiscal benefits are targeted and are expected to be extended. The economic substance of the transactions, the ultimate beneficiary and the certificate of tax residency are also topics to be considered in the future.
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Article supported by PwC Romania
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.