The present decision establishes the procedure for verification and application of indirect methods for determining the taxable base for incomes obtained by individuals and undeclared.
In order to select individuals who are to be checked, the tax authorities will conduct a risk analysis for determining the potential risk for a group of individuals or for specific cases, at the request of institutions or public authorities, after which they will select the group of individuals who will be subjected to prior fiscal verification documentation.
Checking the personal tax situation of individuals with regard to income tax represent all activities carried out by of tax authorities with the object of examining the totality of rights and patrimonial obligations, of treasury cash flows and any other relevant elements to determine the real fiscal situation of the checked individual.
In order to carry out the checking of the personal tax situation of individuals, tax authorities will proceed, primarily, to:
• request, under the law, information from public authorities and institutions;
• analyze all information, documents and other means of evidence regarding the fiscal situation of the individual subjected to verification;
• compare information obtained by means of administration of means of evidence with the information under the tax returns filed, compliant with the law, by the individual under verification or, as the case may be, by income payers or third parties;
• request, under the law, of information, clarifications, explanations, documents and other similar means of evidence from the individual under verification and / or from individuals with whom the individual had or has economic or legal relationships;
• discuss the findings of the tax authority with the individual under verification and / or its empowered representatives;
• establish, if the case, the difference in the taxable adjusted base, by using indirect methods, provided by the Fiscal Code, as well as of its corresponding tax obligations;
• order precautionary measures, under the law.
The period under verification is the prescriptive period of the fiscal authority right to determine tax liabilities, i.e. five years.
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