The Romanian tax environment is particularly volatile, with amendments to tax legislation often being introduced at very short notice. In the current economic climate, it is more important than ever for companies to understand the law and mitigate tax risks. At the same time, in a competitive market, businesses need to take full advantage of potential tax savings, where possible.
Considering the frequent changes to tax legislation in Romania, as well as the increase in audits carried out by the tax authorities, it is very important for taxpayers to adopt a pro-active attitude towards a possible tax inspection.
Given the unpredictable, formalistic and conservative approach of many tax inspectors, companies should seek to prepare strong arguments to support the tax treatment applied to transactions incurred.
In the current context, tax consultants can make a valuable contribution as they can build a strategy, together with the company, to efficiently approach sensitive issues that can arise during a tax inspection.