- Funding Programme
- Year
- 2022
Increasing the efficiency of the fiscal control activity in Romania
The European Commission made recommendations and proposals for the revision and modification of the legislative, methodological and procedural framework of the control activity in Romania.
Context
During recent years, the Romanian Ministry of Finance and the National Agency for Fiscal Administration (NAFA), engaged in a race of modernisation and digitalisation, having taken significant steps in this direction. Some of the most important initiatives meant to contribute to the modernisation and digitalisation process of NAFA were undoubtedly, the solutions introduced for automated electronic reporting.
The development of the Virtual Private Space tool in relation to taxpayers, as well as the access to international data that derived from the regulations on the automatic exchange of information following the EU and OECD standards on anti-base erosion and profit-shifting, offered a new perspective on the tax administration activity and at the same time required the acceleration of the digital transformation processes of NAFA in order to capitalise on the digital transformation processes of NAFA to leverage the available data and information.
Support delivered
Deloitte Consulting & Advisory CVBA, together with Deloitte Tax SRL and Reff & Associates SCA, supported by experts from the Deloitte international network, engaged through the programme conducted by the European Union to provide NAFA with support for increasing the efficiency of the fiscal control activity, particularly regarding the revision of the applicable legislative and methodological framework.
Deloitte analysed and presented conclusions regarding the then-current state of fiscal control activity in Romania in comparison to best European practices. A set of recommendations and proposals was provided for the revision and amendment of the legislative, methodological, and procedural framework related to fiscal control activity, enabling NAFA, from a legislative perspective, to obtain the necessary instruments to achieve the aforementioned objectives.
Further recommendations were also presented to support increased efficiency of the tax control activity and to limit or restrict the circumstances under which certain tax risks could arise.
Results achieved
Having embarked on the implementation of an extensive project involving the modernisation and digitalisation of tax administration activity, NAFA had already taken important steps toward achieving the proposed reform objectives. The digitalisation initiatives that had been implemented, as well as those planned for the medium term, were accompanied by changes in the legislative framework intended to regulate these developments. This project also involved the amendment of the legislative, procedural, and methodological framework governing fiscal control activity, in order to achieve efficiency objectives, and formed part of the broader process of modernisation and digitalisation of tax administration in Romania. The achievement of the objective to streamline fiscal control activity depended both on the plan of measures and on its optimal implementation.
More about the project
You can read the documents related to the project here: