Updates to the Fiscal Procedure CodeKreston Romania
Order no 2869/2014 amending and supplementing Appendix 1 to National Agency for Fiscal Administration Order no 127/2014 approving the Instructions regarding the application of joint liability procedure governed by the provisions of art. 27 and 28 of Government Ordinance no. 92/2003 regarding the Fiscal Procedure Code was published into Official Gazette no 693/23.09.2014
Art. 27 and art. 28 of the Fiscal Procedure Code regulates joint liability for all persons who, in bad faith, determined non-declaring or non-payment of due tax liabilities.
Persons who have led in bad faith to the insolvency of the company and which have joint liability for due tax liabilities of the insolvent debtor are: directors, associates, shareholders, directors.
Application of procedure for joint liability is effectively made by issuing a Joint Liability Decision.
A contestation against Joint Liability Decision can be made within 30 days from its communication.
The contestation is submitted to the fiscal authority which has the competence in managing the principal debtor (the insolvent company).
The contestation is resolved by a Decision issued by a Commission which is than communicated to the contestor.
In connection with the settlement of tax debts, the amounts recovered from codebtors will settle tax liabilities of the principal debtor for the recovery of which it has attracted joint liability.
In case the joint liability was made before radiation of the principal debtor, codebtors remain liable to pay tax debts, and in case of non-settlement of these obligations in due time enforcement measures should be taken.