As per Article 7 of the Fiscal Procedure Code, tax administration procedures in Romania are conducted based on the fiscal risk classification or subclassification assigned to taxpayers. This classification is determined through a risk analysis conducted by the tax authority.

In line with the regulations stated in Article 7 of the Fiscal Procedure Code, taxpayers in Romania are categorized into three primary risk classes: small, medium, and high. The determination of a taxpayer’s risk class or subclass is based on specific criteria, including tax registration, submission of tax returns, level of declaration, and fulfillment of payment obligations to the consolidated general budget.

To comply with the requirements outlined in the Fiscal Procedure Code, effectively managing tax compliance risks is of utmost importance. The measures and actions taken in this regard aim to enhance efficiency and effectiveness, with the objectives of improving tax compliance, reducing tax evasion, minimizing administrative costs, and modernizing the activities of the National Fiscal Administration (ANAF).

The risk sub-criteria, derived from the four general criteria mentioned above, have been approved under ANAF Order 2.017/2022. Among these, particular focus is placed on the general criterion of the level of declaration, specifically addressing sub-criteria related to inconsistencies in data provided in tax returns compared to other legally required forms submitted by the taxpayer. Additionally, discrepancies in data between tax returns and information transmitted by third parties are also considered (as stipulated in the order).

Although the tax legislation does not explicitly define the specific correlations that must exist between the data declared in various types of reports, two frequently identified situations have prompted ANAF to initiate tax audits. These situations involve inconsistencies between the amounts reported in corporate tax returns and those stated in the financial statements, as well as discrepancies between a taxpayer’s VAT return obligations and those of its partners.