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My national law is working against me
Thread poster: S_G_C
Georgi Kovachev
Georgi Kovachev  Identity Verified
Bulgaria
Local time: 15:03
Member (2010)
English to Bulgarian
+ ...
Probably you should have filed a document with the tax authorities Nov 17, 2021

I am glad you are better now.

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Once I have no income, I am not compelled to pay any taxes or social security contributions. Medical insurance is optional - if you can afford to pay for a minimum insurance, you do it, if you can't, you don't do it.
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Probably you should have filed a document with the tax authorities, stating that you are not going to pay your social security contributions if your local legislation provides for that. May
... See more
I am glad you are better now.

[/quote]

Once I have no income, I am not compelled to pay any taxes or social security contributions. Medical insurance is optional - if you can afford to pay for a minimum insurance, you do it, if you can't, you don't do it.
[/quote]

Probably you should have filed a document with the tax authorities, stating that you are not going to pay your social security contributions if your local legislation provides for that. Maybe this is the case and you have failed to do so. In any event of this kind one should consult an accountant.
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Denis Fesik
Denis Fesik
Local time: 15:03
English to Russian
+ ...
Similar story but Nov 17, 2021

Sorana_M. wrote:

I regularly paid all of my dues (income tax, medical insurance, social security contribution), making sure I had no outstanding debts... I closed my business down... Most importantly, it involved that the Tax Authorities run a check-up in their system and give me a "clean bill of financial health" - meaning approving my closure as I had 0 debts... However - and this is the nasty part - the Romanian law allows Tax Authorities to run further check-ups EVEN AFTER A CLOSURE... So, despite the trader having 0 debts at the moment of the closure, they might still be indebted 1 or 2 or 5 years later.


I don't understand the messiness of what your tax authorities seem to be doing. Can't talk about EU tax systems, though. I had a similar experience except that I haven't closed down anything, even during the years I was doing time in the military (after signing a contract just for a change). This didn't serve me well in terms of my relationships with the tax people, and a few times I had to deal with situations where I'd find myself on a military train in the middle of nowhere with a few monthly pays' worth of debt instead of the positive balance I'd just had on my debit card account. The point is, however, that I was always able to tell where my fault lied in all of it, which became harder to do when I resumed trading and the tax office started running desk audits and charging my account every couple of months (and the amounts they'd collect as old debt, which I knew nothing about because they dated too far back, kept increasing). Of course, I tried sorting it out with the tax office, but the problem was that the people I could talk to were unable to tell me anything specific (just the amount due and the year it was due for) and the people who held my tax returns were unavailable to talk to. The biggest amount they collected was more than twice bigger than what I earned per month, my credit history having been ruined thanks to the Ministry of Defence. I suppose I could have hired someone competent to arrange tax refunds for me, because it seems like the only problem was that, at some time, they changed the format in which figures were supposed to be presented in the tax return, so the second page data, interpreted in the new fashion, would produce much higher income figures (and they might as well have 'lost' some of the third pages that showed my actual income). Anyway, I'm not keen on waging bureaucratic wars, so I'm just happy that the desk audits are over and my old debts have been paid up (btw, I was able to claim part of it back from the tax office). Does Romania have any sort of e-government that would show your tax standing online? We have one, so I can check any relevant details, make payments, set appointments, submit papers, etc. Those ordeals just taught me to be more organized, but I suppose you have always kept your things organized in the first place, based on what you wrote here. I do sympathize with your situation and I'm sorry I can't advise you anything worthwhile. Hope someone shows up who knows how these things are done in Romania


 
Tony Keily
Tony Keily
Local time: 14:03
Italian to English
+ ...
Here in Italy... Nov 17, 2021

... the tax authorities pretty regularly hit people with claims for unpaid tax using opaque and vaguely threatening language.

You must respond and either pay or challenge the claim. Challenging can be expensive and risky. If you shut up and pay, they normally reduce the amount payable. So normally people just shut up and pay. I've already done so this year and my wife has just been hit with a claim for EUR 1,500.

It's sort of how shake-downs work in the criminal world
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... the tax authorities pretty regularly hit people with claims for unpaid tax using opaque and vaguely threatening language.

You must respond and either pay or challenge the claim. Challenging can be expensive and risky. If you shut up and pay, they normally reduce the amount payable. So normally people just shut up and pay. I've already done so this year and my wife has just been hit with a claim for EUR 1,500.

It's sort of how shake-downs work in the criminal world too.
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Tom in London
 
S_G_C
S_G_C
Romania
Local time: 15:03
English to Romanian
TOPIC STARTER
Not required Nov 17, 2021

Georgi Kovachev wrote:
Probably you should have filed a document with the tax authorities, stating that you are not going to pay your social security contributions if your local legislation provides for that. Maybe this is the case and you have failed to do so. In any event of this kind one should consult an accountant.


Not required here. No income, not required to pay taxes or social security contributions. I checked this with the Ministry of Health.


 
S_G_C
S_G_C
Romania
Local time: 15:03
English to Romanian
TOPIC STARTER
Don't understand either Nov 17, 2021

Denis Fesik wrote:

I don't understand the messiness of what your tax authorities seem to be doing.


I don't understand it either. Several translators registered as sole traders have complained about it, too. At least one of them was forced by the Tax Authorities to annul their sworn translator authorization despite this being completely illegal (Tax Authorities report to the Ministry of Public Finance, the sworn translator authorization is issued by the Ministry of Justice, an institution pertaining to one Ministry cannot demand the annulment of a document issued by another Ministry). Unfortunately, she told me too late and I couldn't guide her anymore. She closed her business down as well and her local Tax Authorities required this of her.

Does Romania have any sort of e-government that would show your tax standing online? We have one, so I can check any relevant details, make payments, set appointments, submit papers, etc.


It does, but I didn't know about it when I closed my business down. I have no idea whether it operated nationwide at that time.


 
S_G_C
S_G_C
Romania
Local time: 15:03
English to Romanian
TOPIC STARTER
Wow Nov 17, 2021

Tony Keily wrote:

... the tax authorities pretty regularly hit people with claims for unpaid tax using opaque and vaguely threatening language.

You must respond and either pay or challenge the claim. Challenging can be expensive and risky. If you shut up and pay, they normally reduce the amount payable. So normally people just shut up and pay. I've already done so this year and my wife has just been hit with a claim for EUR 1,500.

It's sort of how shake-downs work in the criminal world too.


So some of our Latin brethren embrace the same filthy practices... So sorry to hear that.


Tony Keily
 
Joakim Braun
Joakim Braun  Identity Verified
Sweden
Local time: 14:03
German to Swedish
+ ...
Over here Nov 17, 2021

Sorana_M. wrote:

What they did - and are doing and will continue doing - is a reanalysis of their database. Like, OK, in 2015, we established that you owe us 10 dollars and you paid those 10 dollars on ... . 5 years later, we change our mind and charge you with another 100 or 500 or 1,000 dollars or whatever we want, because we've recalculated your dues.

So how am I guilty for the way they run their database? Is it the same in Sweden?


The Swedish tax authority is free to reopen your case for any reason for two years after a final tax assessment. During that timeframe it could conceivably work out the way it did for you.
There's a six year limit if they claim you've provided incorrect information (whether that's true or not is ultimately up to a court to decide).

Over here, I'd expect a written inquiry, mailed to my official address of residence, with a few weeks to respond. They might want to audit me and require all sorts of records going back years. But something on the line "hey, we don't have any new information, but we've looked at your 2016 tax again and you owe us money" isn't likely to happen here.

[Bearbeitet am 2021-11-17 17:52 GMT]


 
IrinaN
IrinaN
United States
Local time: 07:03
English to Russian
+ ...
One sad real-life note Nov 17, 2021

Sorana_M. wrote:

I had just severed all of my ties with them).


Dear Sorana,

Unfortunately, the above does not happen even after we cross the rainbow. Romania, as lawless and corrupted as it may remain even after becoming a EU member (which, in itself, must have added to its already nightmarish bureaucracy) is, by far, not the only villain here. In the tax world, wherever any taxation system exists, you are guilty until proven innocent((. For example, our heirs will have to face tax authorities before they can lay a hand on any inherited property and... either accept all debts, tax including, or walk away from the inheritance, if those debts are too heavy.

In the US it's 3 years for natural person and 7 years for small business/self-employed receiving 1099s and, if so desired, they can dig further, up to 10 years back. To close LLC, for example, a final release by IRS from any tax obligations is required regardless of any confirmations of routine payments over the course of running the business. With or without an additional audit, of that I'm not sure, maybe on a case-to-case basis. Otherwise, the business will not be dissolved, and some consequences will be in order. Also, they are not obligated by any laws to provide you with any specific or detailed professional consultations. All relevant laws and regulations are public domain, and the rest is considered our responsibility - to read and understand it, or go to CPAs and lawyers, at least for the initial consultation.

Yours is a sad sorry indeed and no one deserves it but payoff seems to be the cheapest way out. Proving tax authorities or government employees wrong without paying a good lawyer may break a much bigger bank than our pockets. Offer them peace, ask for some leniency and installments. Of course, it's easier to advise than to act on it, and I hope there will be a better solution.

Sincerely,
Irina


expressisverbis
Adieu
 
Cristina Crişan
Cristina Crişan  Identity Verified
Romania
Local time: 15:03
English to Romanian
+ ...
... Nov 18, 2021

What happened was that during the 2013-2017 period we only paid health insurance on our estimated incomes. Each year, after filing the income statement, the amounts we owed for health insurance were supposed to be adjusted so that we could pay the balance or get a refund. This was not done. The tax authority only started computing the actual amounts owed during that time in 2018. They explained this was because when they took over the management of the payments from the national health fund in 2... See more
What happened was that during the 2013-2017 period we only paid health insurance on our estimated incomes. Each year, after filing the income statement, the amounts we owed for health insurance were supposed to be adjusted so that we could pay the balance or get a refund. This was not done. The tax authority only started computing the actual amounts owed during that time in 2018. They explained this was because when they took over the management of the payments from the national health fund in 2012 they didn’t get all the records they needed.
That said, I did have my share of woes with the tax authority and can only sympathize with Sorana. We must be on our toes all the time.
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Adieu
 
Tom in London
Tom in London
United Kingdom
Local time: 13:03
Member (2008)
Italian to English
I left Nov 18, 2021

Sorana_M. wrote:

Tony Keily wrote:

... the tax authorities pretty regularly hit people with claims for unpaid tax using opaque and vaguely threatening language.

You must respond and either pay or challenge the claim. Challenging can be expensive and risky. If you shut up and pay, they normally reduce the amount payable. So normally people just shut up and pay. I've already done so this year and my wife has just been hit with a claim for EUR 1,500.

It's sort of how shake-downs work in the criminal world too.


So some of our Latin brethren embrace the same filthy practices... So sorry to hear that.


Ultimately that was part of the reason why I left Italy after more than 20 years - never to return.


Thomas T. Frost
P.L.F. Persio
 
S_G_C
S_G_C
Romania
Local time: 15:03
English to Romanian
TOPIC STARTER
Nothing Nov 21, 2021

IrinaN wrote:
Offer them peace, ask for some leniency and installments. Of course, it's easier to advise than to act on it, and I hope there will be a better solution.

Sincerely,
Irina



Thank you. I will have no income until next year.
I also do not hold any properties. Absolutely nothing of value, no living space, no land, no car. Except for my laptop and scanner, which they cannot seize, since I'm using them for work.


 
S_G_C
S_G_C
Romania
Local time: 15:03
English to Romanian
TOPIC STARTER
Nooo Nov 21, 2021

Cristina Crişan wrote:

What happened was that during the 2013-2017 period we only paid health insurance on our estimated incomes. Each year, after filing the income statement, the amounts we owed for health insurance were supposed to be adjusted so that we could pay the balance or get a refund. This was not done. The tax authority only started computing the actual amounts owed during that time in 2018. They explained this was because when they took over the management of the payments from the national health fund in 2012 they didn’t get all the records they needed.
That said, I did have my share of woes with the tax authority and can only sympathize with Sorana. We must be on our toes all the time.




Oh, f**k. This means my debt could get even higher, since they didn't check 2016 yet.
However, I did pay an extra amount in 2017, one year after closing down my business. I wonder what the heck was that for.


Adieu
 
S_G_C
S_G_C
Romania
Local time: 15:03
English to Romanian
TOPIC STARTER
Increased debt Nov 22, 2021

This morning, my banks announced me that the Tax Authorities have added another amount to my already pending debt. Guess they've run some more check-ups in their system.

 
Denis Fesik
Denis Fesik
Local time: 15:03
English to Russian
+ ...
I guess you could launch a fundraising campaign on some platform Nov 23, 2021

Sorana_M. wrote:

This morning, my banks announced me that the Tax Authorities have added another amount to my already pending debt. Guess they've run some more check-ups in their system.


I don't know if this is doable in your case, or of this forum provides a big enough exposure to make a difference, but I'd sure be happy to help with what I can


P.L.F. Persio
 
S_G_C
S_G_C
Romania
Local time: 15:03
English to Romanian
TOPIC STARTER
One platform Dec 1, 2021

Denis Fesik wrote:

I don't know if this is doable in your case, or of this forum provides a big enough exposure to make a difference, but I'd sure be happy to help with what I can


Thank you. The only platform accepting campaigns from Romania is gogetfunding. I know because I've asked several for something else. However, no campaigns are internationally visible unless they reach a 100 USD/EUR/GBP/other currency limit.

[Edited at 2021-12-01 21:34 GMT]


 
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