Tax consultants in Romania issue alerts over proposed tax changes
Romania's Tax Reforms Face Criticism and Uncertainty
The proposed tax reforms by the Romanian Finance Ministry have sparked controversy, with concerns raised by the Romanian Chamber of Tax Consultants (CCF) about potential breaches of international agreements and misalignment with the doctrines of the ruling coalition's political parties.
The CCF published a message on August 21, expressing their concerns about the tax reforms in a draft law published for consultations on August 14. The message includes detailed recommendations to improve the draft law, and the CCF argues that these reforms could have a negative economic impact and are ambiguous, potentially breaching existing international agreements.
One of the key areas of concern for the CCF is the limited deductibility of intra-group expenditures, as proposed in the tax reform draft. Doru Dudaș, president of The Chamber of Tax Consultants' (CCF) fiscal committee, states that this contradicts EU, OECD, and other international treaty rules. The CCF also mentions the ban on financing companies under financial strains through loans from shareholders as another area of concern.
The tax reform bill is part of the second package of reforms planned by the government of Romania, which includes reforms in public administration and state-owned enterprises. If the issues raised by CCF are valid, particularly those regarding international treaties, addressing them could delay the endorsement of the second package of reforms, which has already been deferred twice after being initially announced for the end of July.
The CCF's concerns question the origin of the proposed tax reforms, implying a lack of alignment with the ruling coalition's political parties' doctrines. The reforms do not reflect the doctrine of any of the four political parties in the ruling coalition, as they do not follow liberal principles, breach the Social Democrats' support for local businesses, and go against the Hungarian party's preference for balanced economic developments.
Despite the controversy, the search results do not provide specific information about who authored the proposed tax reform in Romania. The Finance Ministry has yet to respond to the CCF's concerns publicly.
As the deadline for the endorsement of the second package of reforms approaches, the debate surrounding the tax reforms continues, with the CCF's message serving as a call for transparency and adherence to international treaties and established principles. The outcome of this debate could have significant implications for Romania's economy and its standing in the international community.
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