Infamul articol 11 din Codul fiscal. Inedite evoluții recente
The Infamous Article 11 of the Tax Code. Novel Recent Evolutions

Summary/Abstract: In Romanian administrative tax practice, article 11 of the Tax Code has been used extensively by the tax offices. In their search for supplementary resources and with no appetite for evidence, tax inspectors automatically referred to article 11 and claimed that the transactions they looked at lacked economic substance. Therefore, based on this general anti-abuse rule, taxpayers were refused both the right to deduct VAT and the right to consider expanses as deductible when determining the corporate tax base. The author comments on recent changes in this administrative tax practice that seemed to occur with the issuing of Decision no. 76 of 26 March 2020 by the General Direction for the Resolution of Tax Challenges. In fact, the General Direction seemed to focus on the evidence and the need to actually demonstrate that a certain transaction qualifies as an example of abuse of tax law.

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