Last updated: 16 October 2014
JOINT FISCAL LIABILITY: RULES APPLICABLE TO DEBTORS' COMPLAINTS
Order no. 127/2014, passed in February 2014 by the Romanian tax authority, establishes the procedure according to which tax authorities could ask a joint debtor to pay the fiscal debts of the main debtor towards the State budget. From a fiscal point of view, joint debtors are, for example, for a company subject to an insolvency procedure, those persons who obtained in bad faith the debtor’s assets before the opening of the insolvency procedure, thus causing insolvency, or the debtor’s manager who had not requested the opening of the insolvency procedure although he/she was obliged to do so. Such persons are considered joint debtors for the main debtor’s tax debts. Their joint liability is engaged by a decision issued by the tax authority; such decision represents a credit title. By Order no. 2869/2014, the procedure by which such decision can be appealed by the joint debtor was finally established by the tax authority; we are presenting to you hereinafter.
PROCEDURE
The joint debtor can appeal the decision engaging his/her joint liability within 30 days from the communication of such decision. The appeal shall be judged by the Regional General Directorate of Public Finance or by the Bucharest Regional General Directorate of Public Finance, depending on the resident taxpayer’s registered office. In order to settle complaints regarding the engagement of joint liability, a special commission shall be set up at each Regional General Directorate of Public Finance; such commission shall be composed of 5 members.
After the submission of the complaint with the tax authority, the complaint shall be immediately deferred to the Commission, accompanied by a report of the tax authority, comprising its proposals regarding the solution to be rendered.
The Manager of the Regional General Directorate (and the Chairman of the Commission) shall appoint a technical secretariat, responsible for the receipt of the tax documents, the drafting of the documents issued by the Commission, the meeting minutes, as well as the decision allowing/dismissing the complaint.
The decision shall be communicated to the debtor and the debtor shall have the possibility to appeal it before the competent Court.
TAX DEBT PAY - OFF
The main debtor’s tax debts are paid-off if the procedure for engaging the co-debtor’s joint liability leads to the recovery of the sums due.
If the main debtor is subject to an insolvency procedure, the amounts recovered as a result of the engagement of joint liability shall pay-off its tax debts. The first tax debts which shall be paid-off are those due after the opening of the insolvency procedure.