WAYS TO SETTLE TAX LIABILITIES

Forgiveness: This represents a release from the obligation through authoritative statements by a competent state authority. Fiscal amnesty: This is a way to eliminate the liability for a certain category of public debts. Tax liabilities are erased, without eliminating the actual facts from which the obligations arose. In this context, if another legal norm establishes obligations on individuals deriving from the same facts, they will remain valid regardless of the amnesty. The right to grant amnesty belongs to the National Assembly. Amnesties can be full or partial. In full amnesties, obligations are erased along with the resulting fines and interest. In partial amnesties, only, for example, fines and/or interest are erased, but not the principal of the obligation. Waiver of tax liabilities: Waiver differs from amnesty in that it concerns a specific tax liability that has entered into force and become due. Waiver falls within the competencies of the President. The Constitution stipulates that the claim must be uncollectible. Offset of counterclaims (compensation): Undue paid tax receivables, social security contributions, and other amounts subject to refund are offset against due public receivables. It can be performed by decision of the public executor or at the request of the obligated party. The offset acts can be appealed as per the procedure for appealing revision acts. Refusals to offset can be appealed as per the procedure for appealing during enforcement. Offsetting counterclaims is a way to settle up to the smallest obligation. The conditions under which offsetting is allowed are: - the counterclaims must be between the same parties; - they must be of the same type and interchangeable; - they must be liquid and due - there must be a unilateral declaration of intent from the tax authority for the offsetting. It should be added here that the tax debtor cannot make unilateral declarations for offsetting. They must submit a request to which the tax authority must respond with a unilateral declaration—i.e., give consent. The offsetting acts are subject to judicial review. The consequences of offsetting are as follows: - from the moment the obligation is settled, neither party owes interest, if any was accrued, and if paid, it must be returned. - there can be no demand for the performance of the settled obligation. - the debtor cannot change the declaration of intent by the authority for offsetting, for example, they cannot request another obligation instead of the one indicated by the authority, which has already been offset. Statute of limitations: General for the limitation period Public obligations, including taxes, are settled with the expiration of a 5-year limitation period, starting from January 1 of the year following the year in which they were supposed to be paid. With the expiration of a 10-year limitation period, ALL public receivables are settled regardless of the suspension and interruption of the limitation period unless the obligation is rescheduled or deferred. The limitation period does not apply automatically; merely the passing of time is not enough. The debtor must expressly invoke it. This is done through an objection. Suspension of limitation periods: The limitation period is suspended when: - a procedure has begun for establishing the public receivable and until the issuance of the act but not for more than one year. - when enforcement is suspended, the limitation period stops running for the suspension duration. - when a permit for rescheduling or deferral is given—for the rescheduling/deferment period; - during an appeal of the act; - with the imposition of security measures - when criminal proceedings are initiated, the outcome of which depends on the establishment and collection of the obligation. When the limitation period has been suspended, after the suspension reason ceases, it continues from where it stopped. Interruption of the limitation period: The limitation period is interrupted by the issuance of an act certifying the public receivable or by taking enforcement measures. From the interruption, a new limitation period begins.