Preliminary assessment of the third payment request of Romania (2024)

which tax administration measures and controls shall be adapted to the tax risk of each class of taxpayers.

The Order of the President of ANAF provides definitions of the general criteria established in Article 7(7) of the Code of Fiscal Procedure and, as established by Article 7(8) of Law No. 207/2015 on the Code of Fiscal Procedure, establishes risk sub-criteria developed on the basis of the risk criteria established in Article 7(7) of the Code of Fiscal Procedure. The Order therefore introduces definitions of risk criteria and a list of risk sub-criteria for each risk criteria, which are subsequently employed in the system of tax risk administration based on tax risk classes. Accordingly, in this system, tax administration measures and controls are tailored to the tax risk of each class of taxpayers, as outlined in the risk classes (low, medium and high) defined by Article 7(6) of the same law. Furthermore, the administration procedures for tax receivables under the jurisdiction of the central tax body (defined in Article 1(31) of Law No. 207/2015 as including the Ministry of Finance and ANAF, through the specialised structures with responsibilities of tax receivables administration, including subordinated units of the Ministry of Public Finance or ANAF) are carried out based on the

tax risk class/sub-class in which taxpayers have been classified following the risk analysis conducted by the tax authority. Therefore, the Order of the President of ANAF establishes the definitions of risk criteria and introduces risk sub-criteria which are used in a system of tax-risk administration based on tax risk classes, where tax administration measures and controls are adapted to the tax risk of each class of taxpayers.

The risk criteria shall take into account the following international standards:

• - OECD ISO 31000:2018
• - COM - Compliance Risk Management guide for Tax administrations 2010
• - FTA Guidance Note for Evaluating the effectiveness of the compliance risk treatment strategies.

The risk criteria, as defined in the Order of the President of ANAF, take into account the international standards. Specifically:

• - As the Order of the President of ANAF defines criteria to be used to evaluate tax risk and

support decision making, these are in line with the general guidelines outlined in Chapter 6.3.4 of the ISO 31000:2018 international standards, which recommend organisations to define criteria to evaluate the significance of risk and support decision-making processes, and that such criteria should be aligned with the risk management framework and customised to the specific purpose and scope of the activity under consideration;

• - The risk criteria of tax registration, as defined in Article 2(3) of the Order of the President of

ANAF, are in line with the definition of “register risk” as defined in Chapter 2.5.1 of the Compliance Risk Management Guide for Tax administrations 2010 and the “registration in the tax system” defined as a domain of taxpayer obligation in Chapter I, paragraph 2, of the FTA Guidance Note for evaluating the effectiveness of compliance risk treatment strategies;

• - The risk criteria of submission of tax returns as defined in Article 2(4) of the Order of the

President of ANAF, are in line with the definition of “filing risk” as defined in Chapter 2.5.1 of the Compliance Risk Management Guide for Tax administrations and the “timely filing of tax returns” defined as a domain of taxpayer obligation in Chapter I, paragraph 2, of the FTA Guidance Note for evaluating the effectiveness of compliance risk treatment strategies;

• - The risk criteria of level of declaration as defined in Article 2(5) of the Order of the President

of ANAF, are in line with the definition of “declaration risk” as defined in Chapter 2.5.1 of the Compliance Risk Management Guide for Tax administrations and the “reporting of complete and accurate information in tax returns” defined as a domain of taxpayer obligation in Chapter I, paragraph 2, of the FTA Guidance Note for evaluating the effectiveness of compliance risk treatment strategies;

• - The risk criteria of fulfilment of payment obligations to the general budget and other