New audit responsibilities for the Romanian Tax Authority and for the Ministry pf Public Finances in matters related to the clawback tax, as well as to royalties on mining and oil royalties

Law No. 222/2021 implementing certain measures with respect to audit responsibilities of the Ministry of Finance, as well as for the amendment and completion of some normative acts was published in the Official Gazette No. 735/27.07.2021 and entered into force on July 30, 2021.

According to the explanatory memorandum, the tax audits regarding the clawback tax, respectively the mining and oil royalties are currently carried out on a reduced frequency, while Law no. 222/2021 is aimed at annually verifying the compliance with the payment of such taxes, by conducting economic and financial audits by dedicated structures within the National Agency for Fiscal Administration ("ANAF") and the Ministry of Public Finance. This type of audit is provided in addition to the tax inspections.

Law no. 222/2021 gives the audit responsibility to dedicated structures already established within ANAF and the Ministry of Finance, which will carry out:

• audits on the compliance with the declaration and payment of quarterly contributions provided for in the Emergency Ordinance of the Government No. 77/2011 on the establishment of contributions for finance expenditure in the health industry, also known as ”clawback tax";
• audits on the accuracy of the information and data based on which the mining royalty is computed, as provided for in Mining Law No. 85/2003;
• audits on the accuracy of the information and data based on which the oil royalty is computed, as provided for in the Oil Law No. 238/2004.

The result of the audit carried out by the dedicated structures within ANAF and Ministry of Finance will be registered in an economic and financial inspection report. Based on the findings contained in this report, the authority is entitled to issue a mandatory decision, establishing the amounts due to the state budget.

For the liabilities established following the economic and financial inspection, ancillary obligations are due in accordance with the provisions of the Tax Procedure Code.

The taxpayer is entitled to file an administrative complaint against the measures established following the economic and financial inspection report within 30 days as of the date of receipt of the decision. However, the administrative complaint does not suspend the enforcement of the decision.

Therefore, the next period could lead to a significant increase in audits aimed at assessing the way in which the clawback tax and mining and oil royalties are declared and paid.

For further questions regarding the aspects mentioned in this alert, please contact us:

• Mihnea Galgoțiu-Săraru, Partner | Attorney at Law, Reff & Associates | Deloitte Legal
• Emanuel Bondalici, Manager | Attorney at Law, Reff & Associates | Deloitte Legal
• Mircea Farcău, Senior Associate | Attorney at Law, Reff & Associates | Deloitte Legal
• Elena Moroiu, Associate | Attorney at Law, Reff & Associates | Deloitte Legal