TaxEU 2015: Reasonable vs irrational approaches in the requalification of activities

Anca Grigorescu discussed about reasonable and irrational approaches in the requalification of activities during the ninth edition of the tax and fiscal conference, TaxEU.

In her presentation, Anca Grigorescu underlined the controversial nature of the requalification of activities based on article 7 of the Fiscal Code, deriving mainly from the fact that it is a sensitive topic, prone to interpretation from a technical point of view and likely to trigger abuses. In this context, Anca Grigorescu discussed the unexpected decision adopted at the end of last year, respectively, that of requalifying an activity carried out by a company as dependent. In the context of a law which allows, on the one hand, a considerable margin for interpretation of the dependency criteria and stipulates, on the other hand, the right of the tax authorities to reconsider any transaction for the purpose of reflecting its economic content, the number and variety of the requalification examples shall continue to grow, showed Anca Grigorescu.

Therefore, she recommended an assessment of the legal relations carried out at present by the taxpayers legal entities, in order to timely identify the possible issues and to diminish the potential additional payment obligations established by the tax authorities for the future. Considering that the aspects that may lead to requalification are not always easily identifiable and that they must be considered in the overall context, Anca Grigorescu presented an instrument for self-assessment of certain issues which have to be considered, given the present tendency of the tax authorities to requalify activities.

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