Third parties could be forced to pay debts in Romanian companies

Newsroom 27/02/2014 | 06:00

The National Agency for Tax Administration (ANAF) has issued an order at the beginning of February, which describes the procedures under which individuals and legal entities may be held by the Romanian authorities jointly and severally liable for the tax debts of a Romanian taxpayer, according to Ioana Hockl, partner at ZRP Tax.

This means that if, for instance, a Romanian company does not have enough financial resources/assets to pay its outstanding tax debts, the tax authorities may oblige third parties, including the individual shareholders and/or the administrators, to pay the company’s debts, provided the tax authorities can prove they have contributed in bad faith to the outflow of resources from the company, according to Hockl.

They could have triggered the company’s commercial debts and/or disposed of the company’s assets under artificial transactions that did not reflect sound business practices.

“The issuance of the above mentioned guidelines will have the effect of intensifying the attempts of the tax authorities to attract the joint and several liability of several parties in order to collect outstanding tax debts. Also, I expect that a significant number of such parties may seek to contest in court the approach of the tax authorities,” Hockl told BR.

Ovidiu Posirca

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