Fiscal Code Research Articles

New Legal Basis for International Risk Assessment Procedures in Germany: ICAP, ETACA

The new section 89b of the German Fiscal Code finally introduces a legal basis for international risk assessment procedures. Under these procedures, which are designed for cooperation and transparency, the tax administrations of two or more jurisdictions must at the request of the taxpayer provide an assessment of any tax default risks for facts already realized. If the risk is assessed as low, a formal review of these facts in a subsequent tax audit may be redundant.

Główne tezy najnowszego orzecznictwa Sądu Najwyższego w sprawach karnoskarbowych, dotyczącego błędu co do karalności z art.10 §4 k.k.s. na kanwie urządzania gier hazardowych

The main theses of the Polish Supreme Court's recent decisions in penal and fiscal cases concerning the error of punishability under Article 10 § 4 of the Polish Penal and Fiscal Code in the context of the organization of gambling games The article presents an overview of the recent decisions of the Polish Supreme Court on the institution of an error as to punishability under Article 10 § 4 of the Polish Penal and Fiscal Code, which originated in the context of the factual situations in the field of fiscal offenses of organizing illegal gambling under Article 107 § 1 of the Polish Penal and Fiscal Code. Based on the analyzed judgments, using the dogmatic-legal method, it is possible to reach general conclusions in the context of the criteria for recognizing an error of punishability as excusable and inexcusable. The subject of an error of punishability is the criminal legal status of the behavior that fulfills the elements of the criminal act. Mistake as to punishability means that the Polish Penal and Fiscal Code places fewer requirements on the perpetrator than in the Polish Criminal Code, since in the case of mistake as to the punishability of an act it is only a matter of not knowing that the act is punishable. The exemption of guilt in case of an error of punishability occurs only if the perpetrator's mistake is considered excusable, i.e., one that the perpetrator could not avoid, not due to their recklessness or negligence. It is necessary to accept the general conclusion from the Polish Supreme Court's decisions about stricter requirements in the context of justifying the offender's unawareness of criminality as an entrepreneur, for in the case of a business person, as a rule, a personal model with a higher standard of requirements is expected.

Impact of migration on diabetes burden: audit in the metropolitan area of Bologna, Italy.

To investigate the impact of diabetes in immigrants on the Italian healthcare system, as well as their compliance with standard protocols of control and treatment. The prevalence of immigrants with diabetes living in the metropolitan area of Bologna (about 1 million inhabitants) in 2019 was investigated using a database containing all subjects in active follow-up for diabetes, based on antidiabetic drug use, disease-specific copayment exemption, ICD-9 codes, continuous care in diabetes units. Country of origin was derived from fiscal code. The overall prevalence of diabetes (n = 53,941; 51.8% males, median age 64) was 6.1% in both Italy-born and immigrant cohorts. Immigrant prevalence was 12.4%, moderately higher than that observed in the total population (12.2%). Diabetes risk was increased in the whole immigrant cohort (odds ratio (OR) 1.74; 95% Confidence Interval (CI) 1.69-1.79). Among cases with incident diabetes, the proportion of immigrants (median age, 49 vs. 65 in Italy-born individuals) increased progressively from 11.7% to 26.5% from 2011 to 2019 (males, 8.9-21.0%; females, 14.9-32.8%) in all age groups, particularly in young adults, but also in older subjects. Metabolic control was lower in immigrants, as was adherence to shared diagnostic and therapeutic protocols, without systematic differences in antidiabetic drug use, but much lower use of drugs for comorbid conditions. The population with diabetes in the metropolitan area of Bologna is rapidly changing. Quality improvement initiatives are needed to reduce the burden for the universalistic Italian health care system generated by the rapidly-growing high-risk immigrant population.

Cryptoassets – Perspectives of Accountancy Recognition in the Technological Era

The growth of the cryptoassets phenomena, along with the lack of applicable accounting rules, offers difficult issues for financial reporting specialists in Romania. Therefore, handling the accounting of cryptoassets requires a detailed understanding of both cryptoassets technology and operation, as well as key accounting concepts. In the absence of steps made to control this sort of transactions through accounting standards, holders of cryptoassets are unable to apply the proper accounting treatment for the activity in which they are involved. The regulatory international framework for cryptoassets needs to be consistent and standards should be developed to safeguard holders. The European Economic and Social Committee believes it is important to treat non-financial products based on blockchain technology as physical assets, and not as financial instruments, following the principle of "same activity, same risk, same rules". Others, argue that digital currencies should be recorded as: cash equivalents or cash, inventories, financial or intangible assets. As a result, the purpose of this article is to overview the accounting treatment perspectives given by the IFRS in comparison with the Order of the minister of public finance no.1802/2014 regarding the possible treatments of cryptoassets. Furthermore, the authors believe this article can contribute to accounting research by providing a direction to accounting regulators. Based on the review of specialised literature, existing standards and legislation, the paper indicates that the relevant accounting approaches to cryptoassets are as intangible assets, stock or fixed assets held for sale. However, they could also be seen as means of payment, like foreign currency, even if they do not meet the characteristics of cash. The perspectives on the taxation of cryptoassets are provided by analysing the types of taxes and the VAT regime applicable to cryptoassets, according to the Romanian Fiscal Code, the existing ANAF rules and the VAT Directive at European level. At the same time, the authors analysed and presented certain statistical data, such as the market capitalisation of cryptoassets, the degree of acceptance and the usage degree of cryptocurrencies worldwide, which show that there is a tendency to increase their use.

Actualization of the German Language Status in the Absence of the State Language Category in the German Legislation

This article addresses the issue of the representation of the German language status in legislative texts of the Federal Republic of Germany in the absence of the category «state language». The research methodology is based on the E. S. Kubryakova's understanding of the nominative aspect of the speech activity, who distinguishes two ways of designating objects: both through nomination and predication. The aim of this paper is to determine main functions of linguistic expressions, which regulate the role of the German language in legislation (nomination and / or predication), and language means of their representation. Research objectives: 1) to make a selection of fragments of normative legal acts on the federal level related to language legislation; 2) to select the nominations and / or predications used to actualize the leading role of the German language; 3) to study the structure of selected nominations and / or predications. The material of this paper is presented by excerpts from the Fiscal code, Authentication law, Court constitution law, Law on the protection of brands and other marks, Law on alternative dispute resolution in consumer matters, Law on the residence, employment and integration of foreigners in Germany, Law on the supervision of insurance companies, Trading law, Disability equality act, Commercial Code. In the theoretical part of the work, definitions of the categories «state language», «official language», «nomination» and «predication» are presented. The practical part of the paper addresses the analysis of excerpts from federal legislation. In conclusion, the results of the issue are presented: the leading role of the German language in the legislation of the Federal Republic of Germany is updated through nominations and predications; nominations are represented both by separate compound words and by sequences of words syntactically related to each other; predications are represented by semantic verbs in the form Präsens Indikativ (in conditional clauses) as well as several types of modal constructions.

Single Statement Corresponding to 2023

The order of the President of the National Agency for Fiscal Administration No. 2541/2022 provides the model, content and instructions for filling in the single statement regarding the income tax and the social contributions owned by natural persons (form 212), by means of which the natural persons taxpayers who achieve extra-salary income complete their financial statement for the year 2022 and estimate the income and social contributions owned for the year 2023. The single statement corresponding to the year 2023 presents a series of changes compared to the previous year, in the context of several amendments to the Fiscal Code by the Government Ordinance No. 16/2022, Law No. 370/2022 and the Emergency Government Ordinance No. 130/2021, but also of the most recent pandemic allowance for natural persons, provided by the Government Emergency Ordinance No. 2/2022. The article includes a case study aiming to emphasize the way of filling in this form in the case of taxpayers completing the financial statement for the year 2022 and presents the data with regard to stating the estimated income tax and the social contributions due for the year 2023.

The Impact of Additional Taxation of Part-Time Employment Contracts in the Romanian Economy Against the Background of an Accumulation of Recessions

For the business entities, especially for micro-entities, the year 2022 has represented an economic collapse due to fiscal changes. One of the most controversial measures adopted by the Government aims overtaxing of the employees who obtain income based on a part-time individual employment contract. The article hereby aims to draw attention to the impact of the Fiscal Code changes on the income from salaries for the part-time employment contracts, changes overlapped against the background of the world energy crisis and the military crisis at the Romanian border.

The VAT Regime Regarding the Trading of Lands and Buildings

The article presents a series of theoretical and practical aspects regarding the application of the value added tax regime related to the trading of lands and buildings in accordance to the provisions of the Fiscal Code. The classification of a land in the available for building or with another destination category at the moment of its sale by the owner results from the urbanism certificate. If the land is not available for building, its delivery shall take place in exemption without the right of deduction regime, and if it is available for building, its sale shall be performed under normal tax regime. The delivery of constructions/ parts of constructions and of the lands on which they are built, as well as of any other lands, is VAT exempted. By way of exception, the exemption does not apply for the delivery of new buildings, parts of new buildings or lands available for building.The reduced 5% VAT rate is valid only for certain categories of buildings and by complying with strict conditions. In accordance with the provisions of the Fiscal Code, the reduced rate of 5% is applied to the taxation basis for the delivery of buildings as part of the social policy, including of the land on which they are built. As it was established by the Government Ordinance No. 16/2022, from the 1st of January 2023 we shall have only one rule regarding the application of the reduced tax rate to the deliveries of buildings to natural persons as part of the social policy. Thus, the procurement of a single building with a 5% VAT shall be allowed, individually or jointly with another natural person/other natural persons, if it has a value of maximum 600,000 Lei, VAT excluded. Considering the new provisions brought by GO No. 16/2022 regarding the application of the reduced VAT rate of 5%, the rules regarding the special register were also adapted.

The New Method of Real Estate Properties Taxation – A Sustainable or Non-Sustainable Measure for the Romanian Business Environment

Starting next year, the current real estate taxation system will change so that the way of calculating the tax on buildings will be simplified. The most important change that will occur in this regard is the removal from the Fiscal Code of the notion building with mixed use. The tax for buildings with dual use – residential and non-residential – will be determined according to the majority use. The paper aims to highlight the changes brought by Government Ordinance No. 16/2022, as well as the impact of these changes on the business environment from an accounting and fiscal point of view.

Accounting and Fiscal Treatment Regarding the Travel Expenses

The article shows an accounting and tax approach to the domestic and foreign travel expenses, in accordance with the current provisions of the Fiscal Code and with the regulations in the accounting field. Law No. 72/2022 for cancelling fiscal obligations and for amending normative acts brings a series of novelties with regard to the tax regime of the daily allowance paid during the travel/secondment. Starting with May 2022, the amounts that may be granted to the employees as non-taxable daily allowances which are not subject to social contributions shall have to be calculated according to two different ceilings, as opposed to a single one, provided until the entering into force of Law No. 72/2022. Thus, besides the level provided in the Government Decision No. 714/2018, for the daily allowances in the public system, the employers should also have in view, for the employees, depending on the situation of each person sent in the business trip/secondment, a limit of three gross salaries corresponding to his/her respective workplace, and for the directors, a limit of three remunerations provided in the legal report. Law No. 72/2022 standardizes the tax treatment of the daily allowances, placing all three types of travel allowances, secondment, delegation and mobility, on the same fiscal level.

New Regulations Regarding the Taxation of the Micro-Enterprises Incomes Starting with the Year 2023

The taxation regime of the micro-enterprises incomes is amended starting with the 1st of January 2023, according to the Government Ordinance No. 16/2022 for amending and supplementing the Law No. 227/2015 on the Fiscal Code, the abrogation of normative acts and other financial-fiscal measures. The micro-enterprises income tax becomes optional. We are witnessing the redefining of the microenterprises and the exceptions regarding the entities that can apply this regime and the amendment of the rules for exiting the micro-enterprises income tax application. Changes include the reduction of the achieved incomes ceiling to 500,000 Euro, the elimination of the 3% tax rate, the obligation that the company should have at least one employee, the limitation of the number of micro-enterprises owned by the same shareholder/associate. The ordinance clearly states the tax decrease order of the fiscal facilities. Likewise, the companies applying the specific tax in 2022 are provided with the possibility to select the payment of the micro-enterprises income tax starting next year.

Adjustment of Value-Added Tax

The article highlights the accounting and fiscal regime regarding the adjustment of the value-added tax in the case of capital goods and the purchases of goods and services, other than capital goods. The legal basis regarding VAT adjustment is represented by the provisions of the Fiscal Code and its enforcement rules. The tax adjustment constitutes the exercise of the deduction right in case the taxable person earns the right of deduction in compliance with the legal provisions in force (positive adjustment) or the total or partial cancellation of the initially exercised deduction in case the taxable person loses the right of deduction pursuant to the law (negative adjustment).

The Single Statement Corresponding to the Year 2022

The order of the president of the National Agency for Fiscal Administration No. 2127/2021 provides the model, content and instructions for filling in the single tax statement and the social contributions due by natural persons (form 212), by means of which the natural persons earning non-salary incomes finalize their financial situation for 2021 and estimate the incomes and the due social contributions starting with 2022. The form has been updated compared to the previous year, including a series of changes made to the Fiscal Code by the Law No. 296/2020, the Government Ordinance No. 8/2021 and the Emergency Government Ordinance No. 111/2021. The article also comprises a case study which renders the way of filling in the single statement in the case of tax payers finalizing their financial situation for 2021 and presents the data regarding the estimated income tax and the social contributions due for this year.

Accounting and Tax Treatment of Provisions

The issue of provisions is a controversial one because, on the one hand, applying the prudence principle imposes in many cases the use of these accounting structures, and on the other hand, limiting the deductibility of the expenses arising from their setting-up renders many business entities to avoid their acknowledgement. Another controversy generated by provisions is the one related to the value estimations occasioned by them, as well as to other subjective matters raised by their assessment and accounting. The article hereby tries to identify these issues and to provide solutions for their settlement in accordance with the accounting and tax regulations provided by the Order of the Minister of Public Finance No. 1802/2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as subsequently amended and supplemented, and by the Fiscal Code.

Input and Output in/from the VAT upon Collection System

This article presents a series of theoretical and practical matters regarding the input and output method in/from the VAT upon collection system. The input in this system of a taxable person whose place of business is in Romania can be performed anytime during the financial year, from a tax period to another tax period, and not only in January or on the registration date for tax purposes. The output from the system can be performed by submitting the notification at the tax body until the 20th, inclusively, of the month following the tax period in which the taxable person has exceeded the ceiling provided in Article 282 Paragraph (3) of the Fiscal Code. The notification is sent to the tax body from the 1st to the 20th of each month, if the output is optional. This can be done by the online submittal of the form 097 or 700. The VAT upon collection system cannot be optionally waived in the first year in which the application was opted for.

The Taxation Revenue from Independent Activities Obtained from Exercising the Expert Accountant Profession

The article discusses a series of theoretical and practical aspects regarding the taxation of revenues from independent activities obtained from exercising the expert accountant profession. These taxpayers have the obligation to estimate the annual net revenue for the current year in order to determine the estimated annual tax and the social contributions in certain circumstances. They will have to submit the single tax return to the competent tax authority within the legal timeframe stated by the Fiscal Code. Next year taxpayers submit the single tax return until 25th of May and declare the actual revenues obtained in the current year in Chapter I, with the purpose of establishing the tax for the current year.

Diff erentiation of solutions in view of the public prosecutor’s supervision over preparatory proceedings in criminal and tax off ence cases based on selected provisions of the code of criminal procedure and the penal fi scal code from the perspective of good law characteristics

This article is an attempt to show the consequences of differences in regulations on Public Prosecutor’s supervision over proceedings as provided for by the Penal Fiscal Code and the Code of Criminal Procedure, from the perspective of good law characteristics. On the basis of selected regulations, the author attempts to demonstrate that the marginal supervision of the Public Prosecutor over the investigation in the penal fi scal proceedings as provided for in the legislation contradicts the clarity, coherence and effectiveness of law. The differentiation between solutions adopted in this respect gives rise to problems with normative regulations based on the Penal Fiscal Code and makes the regulations inconsistent with other legislation: the Act of 28 January 2016 — Law on the Prosecutor’s Offi ce and the Act of 17 June 2004 — on complaint regarding infringement of the party’s right to examine the case in preparatory proceedings conducted or supervised by a prosecutor and court proceedings without unreasonable delay. Further, in the content of the article the author refers to selected legislation applicable also to investigation regulated by the penal fi scal proceeding regulations. They serve as an example to demonstrate the thesis that the differentiation introduced in this respect in the legislation is entirely unreasonable as compared to the related regulations of the Code of Criminal Procedure. The analysis of those regulations proves that there is no system-related or legal argumentation that would justify this kind of exceptions. In the conclusions drawn on the basis of the analyses carried out in the article, the author states that the introduction of different regulations in the Penal Fiscal Code and the Code of Criminal Procedure as regards the Public Prosecutor’s supervision over the investigation conducted by the fi nancial authority responsible for preparatory proceedings and some exceptions in respect of investigations does not fulfi l the requirements of good law.

Adjusting the Tax Base of the Value Added Tax

The tax base and the related value added tax is fully determined on the delivery of goods and/or the performance of services. The present article discusses a series of theoretical and practical aspects regarding the cases where the tax basis for the VAT can be reduced in accordance with the provisions of Article 287 from the Fiscal Code and the related Methodological appliance pronouncements.

The Taxation Mechanism for the Income Obtained Through Practice of the Lawyer Profession

The article discusses a series of conceptual and practical aspects regarding the taxation of the income obtained through practice of the lawyer profession. Taxpayers who obtained independent income from this profession have to establish through self-assessment the filling and payment obligations in the single tax return filled within the legal timeframe stated in the Fiscal Code. The lawyers registered with the Bar, licensed to practice the profession, have the obligation to contribute to their own pension and other social security rights system. The contribution obligation of the members of the National Social Security Fund for Lawyers becomes effective for each calendar month starting from the moment the basis for the calculation of the monthly contribution is established, this institution being responsible for the administration of the contribution receivables of the Bar members.

Analysis of the changes with respect to the authorized donees in the Fiscal Code of the Federation of 2020, legal and accounting aspects

Mexico is the fifth country that collects the least in Latin America as a proportion of gross domestic product (GDP) and also the one with the lowest income from the value added tax, has highlighted the Organization for Economic Cooperation and Development (OECD) in the year 2020, (OCDE, 2020) derived from this, the Federal Executive proposed a series of reforms that allow increasing collection, among which the most notable is the Decree that reforms, adds and repeals various provisions of the Tax Law on the Income, the Law of Value Added Tax and the Fiscal Code of the Federation which has a direct effect on the so-called Authorized Grantees, this based on the fact that cases have been detected in which the income of the Authorized Grantees is not found. related to the activity authorized by the Law and carry out simulated operations. The objective of this work is to analyze the effects that this reform will have and try to foresee its immediate success.