Tax amnesty under the form of wavering ancillary tax liabilities for principal tax liabilities

The new legislative provisions allow a wavering of ancillary tax liabilities related to the principal tax liabilities (i.e. corporate income tax, value added tax, payroll taxes, withholding taxes, environmental taxes etc.) with due date up to 31 March 2020.

Taxpayers can benefit from this facility in connection to principal tax liabilities that were settled by the taxpayer with delay or the ones generated by additional tax liabilities declared under rectifying statements or following a tax audit, as follows:

  • Perform a voluntary disclosure with respect to tax matters related to period up to the 31st of March 2020 without being subject to the adverse effect of having ancillary tax liabilities imposed (i.e. compliance errors within the tax returns, non-compliance with domestic tax regulations, mitigating past tax risks).
  • Recover or waver the ancillary tax liabilities imposed for principal tax liabilities that had as due date the 31st of March 2020;

Mazars can assist you with:

  • Assessing your particular situation by analyzing the taxpayer file in order to explore the potential benefits of such incentive and ways of streamlining the implementation (tax receivables, offsetting outstanding debts, ways of settling current debts);
  • Assessing the tax position of the company with the aim of identifying past non-compliance aspects or issues that are of a going concern in order to identify the potential alternatives in mitigating them and rectifying the company’s tax position. 
  • Review inter-company flows for past periods and perform a retrospective adjustment, if applicable, in order to comply with the arm’s length principle.

The deadline is 15th of December, if the conditions below are applied:

  1. All outstanding tax liabilities have due dated up to the 31st of March 2020 must be settled;
  2. All tax liabilities having as due date between the 31st of March 2020 the moment the notification is submitted must be settled (however, no later than the 15th of December 2020);
  3. All tax returns will be submitted.