Government support measures in the third wave of the COVID-19 epidemic
By Nicoleta Baragan, Avocat Definitiv, and Teodora Luca, Avocat Definitiv
Cabinet de Avocat ’’Mihai Catalin Luca’’
Given that Romania’s economic situation seems to be still far from stabilising, and with the entry into the third wave of the SARS-CoV2 virus epidemic, new restrictions have been imposed on economic agents, the Romanian Government has approved new fiscal measures and intended to support the business environment.
In the Official Gazette no. 315 of March 29, 2021, the Government Emergency Ordinance no. 19/2021 regarding some fiscal measures, as well as for the modification and completion of some normative acts in the fiscal field.
In the following we present a summary of the most important regulations contained in this emergency ordinance, with indirect impact in the field of gambling:
• The period in which the restructuring of budgetary obligations can be requested under Government Ordinance 6/2019 is extended – the notification regarding the restructuring intention can be submitted until September 30, 2021; the restructuring application can be submitted until January 31, 2022.
• If the notification regarding the restructuring intention was submitted prior to the entry into force of GEO no. 19/2021 and the restructuring request is not submitted until June 30, 2021, the forced execution begins or continues, as the case may be. The submission of a new notification by June 30, 2021 or after the expiration of this term shall cease to have effect. If the restructuring application is submitted after the start of enforcement, it shall be suspended from the date of submission of the restructuring application.
• If the notification regarding the restructuring intention is submitted after the date of entry into force of GEO no. 19/2021, but the restructuring request is not submitted within 6 months from the date of submission of the notification, the forced execution begins or continues, as the case may be. If the 6-month period expires after January 31, 2022, the restructuring application must be submitted by this date. Submitting a new notification within 6 months or after the expiration of this period will not take effect. If the restructuring application is submitted after the start of enforcement, it shall be suspended from the date of submission of the restructuring application.
• It is extended until January 31, 2022 the applicability of some provisions of GEO no. 48/2020, respectively: (i) the provisions regarding the refund of VAT with the subsequent performance of the tax inspection and (ii) the provisions regulating that interest and late payment penalties for late payment of installments are not calculated and not due from the unpaid staggered charts until the fulfillment of the mentioned term.
Government support measures in the third wave of the COVID-19 epidemic
• The deadline until which, pursuant to GEO 69/2020, the request for cancellation of the accessories of the outstanding main budgetary obligations can be submitted by March 31, 2020, is extended until January 31, 2022.
• It also regulates the possibility of obtaining the cancellation of interest, penalties and all accessories related to the main budgetary obligations administered by the central fiscal body due before March 31, 2020 inclusive and individualised in tax decisions issued as a result of a tax inspection or verification of personal tax situation in progress on the date of entry into force of GEO no. 19/2021 or started after this date, but not later than January 31, 2022, regardless of the moment when the tax inspection is completed, if the following conditions are cumulatively met:
(i) all differences in the main budget obligations individualised in the taxation decision are extinguished by the deadline regulated by the Fiscal Procedure Code, established according to the date of communication of the decision – respectively until the 5th of the following month (for communication within 1-15 of the month ) or until the 20th of the month following the communication (for communication between 16-31 of the month); and
(ii) the request for cancellation of the accessories is submitted until January 31, 2022 inclusive, respectively within 90 days from the communication of the taxation decision, if the term of 90 days is fulfilled after January 31, 2022 inclusive.*
The accessories that can be canceled in accordance with the above and that were extinguished after the entry into force of GEO no. 19/2021 shall be returned in accordance with the provisions of the Fiscal Procedure Code.
• It is extended until September 31, 2021 the term until which it can be submitted to the fiscal bodies, based on GEO no. 181/2020, the request for granting the payment rescheduling, in simplified form, of the budgetary obligations due after the date of declaring the state of emergency, administered by the central fiscal body.
Government support measures in the third wave of the COVID-19 epidemic
Unfortunately, the expectations of traditional gambling organisers, especially casino organisers characteristic of casinos and slot machines, which are required to pay quarterly authorisation fees, are still under analysis by the Romanian Government. , not yet approved.
However, a significant first step was taken, on the website of the National Office for Gambling being put in public debate the draft emergency ordinance that includes the long-awaited provisions.
Even if the provisions will only have effects for the future, recognising the economic difficulties faced by this economic field and offering solutions to support the exit of operators from the difficult financial situation they face as a result of activity restriction and total or partial lack of revenue is a fundamental exercise in returning to normalcy.
Even if, in accordance with the provisions of Government Emergency Ordinance no. 106/2020, during the periods in which the activity was restricted, under the conditions and under the Government Decisions on the establishment and extension of the alert status, the organisers of remote gambling do not owe authorisation fees, fees due in advance during this period they become due and create obligations for gambling organisers.
In other words, even if the activity is almost totally restricted and during this period the organisers do not obtain income and do not owe authorisation fees, under the legislation in force, they are still obliged to pay in advance the fees due for the next quarter, without to know if the activity will be able to be carried out effectively or not.
Such a situation creates major financial imbalances and increases the risk of companies becoming insolvent, all the more so as restrictions have been in place for more than a year and companies are still without income.
We still hope that the normative act will finally be adopted, before its long-awaited effects are belated.
Government support measures in the third wave of the COVID-19 epidemic
By Nicoleta Baragan, Avocat Definitiv, and Teodora Luca, Avocat Definitiv
Cabinet de Avocat ’’Mihai Catalin Luca’’
