Eliminating the minimum tax as of 1 January 2010 is welcome, according to Peter de Ruiter, Partner and Head of Fiscal and Legal Advisory Department at PricewaterhouseCoopers Romania.
PwC is also against replacing the minimum tax with a lump-sum tax for sectors in which fiscal evasion is more difficult to assess, such as the restaurant sector. de Ruiter said that a lump-sum tax violates the principle of taxing profit based on accounting calculations. Moreover, according to the official, all companies in Romania should be subject to the same type of tax.
“A lump-sum tax violates the principle of taxing profit, based on the rules of accountancy, applied to the rest of the companies. Every company should report its economic activity in compliance with accounting rules, and be taxed accordingly. By implementing a lump-sum taxation system, ANAF [the National Agency for Fiscal Administration] confirms the incapacity of collecting taxes in a fair manner and of countering fiscal evasion,” the PwC official added.
