The Emergency Ordinance no. 44/2015 supports the general interest of supporting economic growth by helping taxpayers in distress, by providing some tax incentives to stimulate voluntary payment, by them, of the outstanding payment obligations.

To this end, this legislative act provides for the cancellation of the late payment penalties and a 54.2% share of the interest related to the main payment obligations, outstanding as at 30 September 2015, inclusive, if several conditions are fulfilled cumulatively.

The current provisions include:

• the cancellation of the late payment penalties, and the 54.2% share of the interest related to the balances of payment obligations declared extra by amending statements correcting the main payment obligations with the maturity prior to 30 September 2015, inclusive, but also for the main payment obligations individualized in taxation decisions issued as a result of tax inspections underway by the entry into force, and the act stipulates numerous requirements to be met cumulatively for each of the aforementioned situations;
• the taxpayer shall file the application for the cancellation of ancillary obligations by 30 June 2016, inclusive, under penalty of preclusion.
• the taxpayer’s intention to benefit from the cancellation of the ancillary payment obligations shall be conveyed to the competent tax authority no later than the date of submission of the application for their cancellation.

For taxpayers who have notified the tax authority, the following is stipulated:

• The late payment penalties and the share of 54.2% of the interest shall be deferred for payment in view of the cancellation and, in this case, the tax authority shall issue the decision for payment deferral;
• The enforcement procedure shall not begin or shall be suspended for ancillary payment obligations deferred for payment;
• The ancillary payment obligations deferred for payment shall not be settled until the settlement of the application for the cancellation of the ancillary obligations or by 30 June 2016, inclusive, in case of not submitting the application for the cancellation of the ancillary obligations.

The taxpayers for whom preventive seizure or enforceable seizure has been set up as at the entry into force of this emergency ordinance may make payments from the amounts preserved as a result of the seizure.

Insolvent taxpayers or taxpayers undergoing reorganisation may take advantage of these tax incentives if they meet the conditions required by this ordinance;

In the case of territorial & administrative units, the incentive provided for by the emergency ordinance shall be granted if local governing body, i.e. the local council, issues a decision in this respect. Thus, the incentive covers the cancellation of up to 73.3% of the late payment interest making up the component of the late payment penalty;

Moreover, taxpayers who, as at 30 September 2015, benefit from payment rescheduling may also enjoy the cancellation of 54.2% of the interest rescheduled for payment and not settled as at 30 September 2015 if the payment rescheduling is completed by 31 March 2016. In this case, the 54.2% share of the interest paid at the same time as the payment of the rescheduling instalment shall be refunded according to the Tax Procedural Code;

The decision of deferring the late payment penalties, and the 54.2% share of the interest shall no longer be valid in case of rejection of the application for the cancellation of the ancillary obligations or in case of failure by the taxpayer to submit the application by 30 June 2016.

1. The Official Journal, Part I, no. 785 of 21 October 2015, featured the Emergency Ordinance no. 44/2015 on granting certain tax incentives.