As tax disputes proliferate globally, effective advice and assistance becomes crucial.
Tax disputes are rising globally as governments focus on perceived underpayment of taxes. Cross-border taxation issues such as Transfer Pricing, in particular, are creating a surge of disputes because new legislation creates grey areas and the need for test cases. This makes tax disputes a fact of life for firms with complex tax positions and multijurisdictional presence.
Businesses are facing an environment where audits from tax authorities are on the rise. As tax laws become more stringent and regulations more complex, companies have an incentive to avoid disputes whenever possible. We aim to prevent tax disputes at source with robust, risk-based tax advice. We can also advise on record keeping and other processes to minimise the potential of proceedings.
When disputes occur, however, we offer consistent assistance throughout a difficult process which can take, in some cases, several years. We also provide strategic guidance on the risks and benefits of arbitration versus court proceedings and whether to accept settlement offers.
In Romania, our experience in assisting clients in tax controversy indicates that an increased number of Transfer Pricing audits lead to tax litigation proceedings with the Romanian Tax Authorities.
Given that tax audits in Romania are not a linear process and are time and resource intensive for taxpayers, we are best equipped to assists you in navigating the tax audit process.
We offer support covering:
- Risk analysis and sanity checks in order to outline the main points that may be scrutinized during a tax audit and mitigate the taxpayer’s risk profile.
Assistance during tax audit:
- Assistance during tax audits including direct communication with the tax audit team and participation in meetings with the tax authorities;
- Review of tax audit procedures;
- Preparation of formal responses given to the Romanian Tax Authorities;
- Drafting point of views in relation to the findings reached by the tax audit team.
Post-audit/court proceedings assistance:
- Preparation of tax challenges in relation to the tax assessment issued by the Romanian Tax Authorities;
- Set up of appeal strategy;
- Assistance in drafting annulment claims;
- Legal representation.
Assistance in mitigating double taxation as a result of cross border transfer pricing adjustments
- Analysis of applying for a Mutual Agreement Procedure (MAP) as means to settle transfer pricing adjustments.
Our teams include, in some cases, staff who have worked with local taxation authorities that can provide an unique perspective.