Official opinion of the National Revenue Agency (NRA) regarding the application of the Emergency Measures and Actions Act with respect to the tax terms under TSIPC and other tax laws

On 31 March 2020 the NRA’s Executive Director issued an Opinion on the application of the Emergency Measures and Actions Act, declared by a Resolution of the National Assembly on 13 March 2020, with respect to the tax terms under Tax and Social Insurance Procedure Code (TSIPC) and other tax laws (hereinafter referred to as the “Opinion” and the „Act”). Although the NRA’s opinions are not legally binding the citizens, they provide an insight on NRA’s interpretation and the implementation of the tax and social-insurance legislation respectively.

Except of those terms explicitly envisaged in §25 – 31 of the Act, the general provisions of TSIPC regarding the deadlines and the respective procedures for establishing, declaring, filing, securing and collecting public receivables for customs duties, taxes, excises, mandatory social-insurance instalments, state and local fees and other public duties are not affected by the Act. Thus, according to the Opinion, the terms regarding the declaring, the tax audits performance, the filing and securing of the public receivables, as stipulated in the TSIPC and other tax laws, are not affected by the state of emergency, neither stopping nor lengthening in connection therewith.

No amendments are being made with respect to the terms of VAT declarations and VAT payments. The terms under VAT Act shall be strictly abided.

According to NRA when applying the TSIPC, the revenue authorities shall consider the state of emergency, and actions, requiring their physical presence in the premises (inspections, examinations, inventory, and review of documents at offices) shall not be carried out. The terms for the performance of the said actions shall be prolonged. The terms of issuance of individual administrative acts under TSIPC are generally instructive and do not affect the acts’ validity. Thus, according to the Opinion, the TSIPC entitles the parties and the other participants in the respective proceedings with diverse opportunities to preserve their rights and legitimate interests in case of difficulties in performing procedural actions – as for instance – requests for extension of terms, requests for suspension of proceeding etc.

The Opinion states that the procedural terms of following proceedings are subject to the general rules under TSIPC:

  • the reimbursement and recovery proceedings;
  • the issuance of a decision on appeals against the revenue authority’s or public enforcement agent’s acts – the terms for the pronouncement of the decision-making authorities;
  • the integrated administrative services – the issuance of certificates under Article 87 of TSIPC.

The procedural terms under the above proceedings cannot be suspended. Such a suspension may lead to infringement of the obligated persons’ rights and legitimate interests.

It is explicitly mentioned that pursuant to Article 3, item 2 of the Act, NRA shall consider that during the state of emergency the periods for appealing the acts issued in proceedings of establishing, declaring, filing, securing and collecting taxes and social-insurance installments are suspended. Should these terms be applied, the individual’s rights to bring an appeal would extinguish and tax or social-insurance duties may arise. With the state of emergency’s termination, the suspended terms shall commence as from the date of the suspension for the remaining period. The terms are suspended as from 13 March 2020. In case that during the state of emergency, however, the obliged individuals bring an appeal, the competent authority shall initiate the relevant proceeding thereon and make a pronouncement within the periods set out in TSIPC.

The terms for implementing the competent authorities’ instructions shall be suspended on grounds of Article 3, item 3 of the Act.
Article 3, item 2 of the Act shall be applicable to the term regarding the appeal of the coercive administrative measures’ (CAM) orders. If an order for imposition of a CAM has been issued in respect of which the appealing period did not expire, the CAM cannot enter into force, therefore it cannot be enforced due to the suspension of the appealing period during the state of emergency.

In the conditions of state of emergency, declared by an act of the National Assembly, the NRA consider as incompatible with the specific measures taken by the bodies of the legislative and executive power, the issuance of an order for imposition of CAM under Article 186 of the VAT Act – sealing of a commercial site. According to NRA, the execution of orders in force, as well as those with a preliminary order for imposing a CAM for sealing a commercial site, should not be executed during the state of emergency.

The NRA’s Opinion refers to the provision of Article 4, item 2 of the Act, which extends the validity of the administrative acts (limited by a term expiring during the state of emergency) by one month from the termination of the state of emergency. According to NRA, such acts are the decisions of the Director of ODOP Directorate (Appeal and Tax Insurance Practice) suspending the execution of a respective act and which decision specifies the term of validity, which is in effect normally until the act enters into force. If the period so-determined by the decision-making authority expires during the state of emergency, it shall be extended by virtue of the law and no additional deliberate act is required.

The Opinion concludes by stating that, in principle, the procedural terms under the court proceedings are ceased during the state of emergency by the virtue of the Act. An exception follows with regard to the terms and proceedings under the Administrative Violations and Sanctions Act – clearly stipulated in Article 3 of the Act. The proceedings under the Administrative Violations and

Sanctions Act continue in accordance with the rules and procedures laid down therein.

We would like to remind that the Act explicitly extended some tax deadlines for declaring and submitting tax under CITA, PITA, LTFA, and the statute of limitations, as well as public enforcement proceedings under the TSIPC, were suspended until the state of emergency’s termination.

The Opinion is available at the official web page of NRA:

For more current topics related to the legislation regulating the emergency situation, you can find information on our website – Of course, you can also contact us for further information and assistance at [email protected].

The above provides general information related to the adoption of the Emergency Measures and Actions Act and is not exhaustive and serves as a guide for interpreting the news as of April 2, 2020.