The Romanian National Agency for Tax Administration has issued thousands of notifications against the persons considered responsible for the insolvency/insolvability of certain companies. These persons are managers, administrators of those companies and other categories who have had various business relationships with the debtor. Some of these actions can be challenged in Court, with high chances to win, according to Pavel, Margarit & Associates Romanian Law Firm.
Last year, the Romanian Fiscal Authority recovered millions of RON from these people.
Thus, in 2016, the Fiscal Authority sent notifications to 6,353 people (managers and administrators), for a total of 4,820 debtors (companies), according to statistics obtained from ANAF by Pavel, Margarit & Associates Romanian Law Firm. The value of the tax liabilities received from the debtors was almost 2 million Euros. The persons considered jointly liable paid 600.000 Euro out of this amount. Only in the first half of 2016, the Tax attributed jointly liability for 2.902 persons, from which the Authority received 545.000 Euros.
Also, in the first four months of 2017, the Tax Authority attributed joint liability to 1,693 people (managers and administrators) for 1,358 debtors (companies). The value of the tax liabilities received by ANAF from the debtors in the period mentioned was 400.000 Euros, and from the persons against whom the liability was jointly charged, the amount of 50.000 Euros was collected.
“Our law firm has experience in such cases, and recommends that these tax authority decisions be challenged in court because there is a chance of success. Often, accountability is abusive because the administrators and managers of the companies in question are not responsible for the company’s entry into insolvency, nor for its becoming insolvent, but the economic situation is to blame. The appeal procedure for ANAF decisions is as follows: first, an appeal is lodged against the forum that issued the decision and if this is solved unfavorably within 30 days, the appeal can be challenged in Court”, says Radu Pavel, the Managing Partner of Pavel, Margarit & Associates Romanian Law Firm.
Pavel, Margarit & Associates Romanian Law Firm assisted and represented last year the director of a large telecoms company in a case of personal liability for a 450,000-euro debt of the company. Notification was submitted by ANAF. The role of the law firm was to analyze the conditions under which such notification may be issued in accordance with insolvency law and to reject it. In this case, the company assisted and represented the client, successfully obtaining the rejection of the ANAF decision. That decision was considered inadmissible by the Court.
At the same time, the law firm represented the director of a company in a case involving personal liability for a debt of the company amounting to 110,000 euros. The role of the law firm was to prepare the defense statement for the client and prove that he was a good manager, and the company’s entry into insolvency was caused by the financial crisis, not because of poor administration. As a result, the Court cancelled the decision issued by ANAF.
According to the Romanian Code of Fiscal Procedure, “in the category of those who can be held jointly liable are associates from unincorporated associations, including members of family businesses, for their tax obligations, together with legal representatives who, in bad faith, have determined non-declaration and / or non-payment of tax obligations at maturity; third parties in the situations stipulated by the law, within the limit of the amounts removed from being unavailable, the legal representative of the taxpayer who, in bad faith, declares to the bank that he does not have other assets.”
Pavel, Mărgărit & Associates Romanian Law Firm is one of the top law firms in Romania, which offers legal services at the highest quality, beyond client’s expectations. The Law Firm approaches the cases with maximum professionalism and dedication. It’s ultimate goal is obtaining exceptional results and achieving the client’s objectives, in a time efficient manner. Among Pavel, Mărgărit & Associates clients are top multinationals and local companies. In 2017, the success stories of the Romanian Law Firm have brought recognition of the most prestigious international guides and publications. Thus, Pavel, Mărgărit & Associates Romanian Law Firm ranked second place in Romania in the rankings of business law firms with the most relevant expertise this year, realised by the Legal 500 publication, the most prestigious guide for law firms in the world, based in London, UK. The law firm is also recognized internationally by IFLR 1000 Financial and Corporate Guide 2018. Pavel, Mărgărit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Mărgărit & Associates Romanian Law Firm including areas of practice and the most important deals can be found on the website www.avocatpavel.com, which is one of the most complex law firm websites in Romania.