Zamfirescu Racoti Predoiu
Bucharest, October 06, 2010 - The number of tax disputes handled by Zamfirescu Racoti Predoiu (ZRP) during the first 9 months of 2010 has doubled as compared to the same period of the previous year, while the value of amounts under litigation exceeded EUR 100 million, according to the statement of the company’s representatives.
The increase in the volume of tax disputes was generated by several factors, such as:
- The intensification of tax inspection activities due to the pressure faced by tax authorities to increase budgetary revenues
- The increasing need of clients to cut down costs (including tax costs), determined by liquidity shortages as well as the need to avoid financial deadlocks, in order to enhance the efficiency of their activities and maintain a competitive position on the market.
A great part of the tax disputes in which Zamfirescu Racoti Predoiu has been involved relates to the contestation of VAT liabilities imposed on companies or individual entrepreneurs, as well as corporate tax liabilities related to expenses whose deductibility was rejected by the tax control bodies.
“Due to the recent changes regarding the taxation of income earned by individuals (including the change of the rules regarding the requalification of income derived by free-lancers into employment income), we expect that tax controls will intensify in the near future. Since tax provisions in this area are unclear and sometimes contradictory, it is possible that tax authorities and taxpayers may have a different interpretation of certain tax regulations”,says Ioana Sandru, Partner of Zamfirescu Racoti Predoiu Tax SRL said.
“We have noted a significant increase in the number of cases whereby the decisions of the tax bodies for the settlement of taxpayers’ contestations have been challenged in court by taxpayers. Also, we have noted that in most cases, the solutions issued by the tax authorities have been either purely formal or have ignored the taxpayers’ rights. We encourage companies to actively defend their rights in court”, says Stan Tîrnoveanu, Senior Partner and coordinator of the law office’s tax dispute group.
Zamfirescu Racoti Predoiu has one of the strongest and most appreciated tax litigation teams on the local market and ensures a perfect complementarity with the tax advisory practice of ZRP Tax, an entity that became operational at the beginning of 2010.