The practice of gambling in 2020
Gambling fees as a result of declaring a state of emergency in Romania GEO no. 48 of 2020 published in the Official Gazette no. 319 of 16.04.2020
Article from the series „Gambling practice”, by Anchidim Zagrean, vice-president ROMBET
It is reconfirmed, through this new regulation, the fact that art. 332 of the Government Emergency Ordinance no. 1 of 1999, regarding the state of siege and the regime of state of emergency, amended and supplemented by GEO no. 34 of March 26, 2020, is also applicable in the case of organization licenses and gambling operating permits.
Art. 332 The validity of the documents issued by the public institutions and authorities is maintained throughout the state of siege or the state of emergency, as well as for a period of 90 days from the cessation of these states.
Measures taken
1. The validity of gambling licenses shall be maintained throughout the state of emergency, as well as for a period of 90 days from the termination of this state of emergency. Operators in the field, who wish to continue the activity, can make requests for relicensing, no later than 90 days from the date of cessation of the state of emergency;
2. The validity of gambling operating authorizations shall be maintained throughout the state of emergency, as well as for a period of 90 days from the termination of this state of emergency. Operators in the field, who wish to continue the activity, may make requests for the reauthorization of the activity, no later than 90 days after the cessation of the state of emergency;
3. During the state of emergency, the payment obligations related to the authorizations for the operation of traditional games of chance shall be suspended;
4. For the activities of traditional gambling, the sanctions provided in the O.U.G. no. 77/2009 and the methodological norms regarding the non-payment of the fees related to the gambling exploitation authorizations, if the payment of the fees is made within 30 working days from the cessation of the state of emergency;
5. Operators carrying out traditional gambling activities shall not be subject to any fees relating to their operating authorizations for the entire period of the state of emergency.
Predictable behavior of implementing the measures adopted
1. License to organize gambling – common behavior – for traditional and online gambling
a) The 10-year validity period expires during the state of emergency (unlikely):
– is automatically extended by 90 days, after the cessation of the state of emergency;
– the re-licensing file is being prepared within this 90-day period;
– a new license is requested from the Supervisory Committee, a complete file submitted 9 working days before the meeting;
– after approval, the advance payment of the annual license fee shall be declared and made;
– the date 1st, of the month following the month in which the payment was made, must be found the interval of the 90 days of extension.
b) License valid during the state of emergency – 10 days before the expiration of the previous licensing year:
– the tax claim, regarding the annual license fee, is established by the taxpayer’s tax return;
– the amount of the fiscal obligation is calculated;
– the annual license fee is paid;
– a copy of the tax return or any other amendments thereto, as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made.
Note:
By the measures recently adopted, at the proposal of the ONJN, the obligation to declare and pay the annual license fee has not been suspended or postponed, remaining in force as provided in GEO 77 of 2009.
2. Authorization to operate gambling – different behavior
A) Traditional gambling
a) The annual operating license expires during the state of emergency
– is automatically extended by 90 days, after the cessation of the state of emergency;
– the fiscal receivable, regarding the monthly or quarterly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated;
– the payment of the monthly or quarterly authorization fee is made, within 30 days from the lifting of the state of emergency;
– does not owe fees related to gambling operating authorizations for the entire period of the state of emergency – valid for flat-rate authorization fees;
– a copy of the tax return or any other amendments thereto as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made;
– the reauthorization file is prepared
within this 90-day period;
– a new authorization is requested from the Supervisory Committee, a complete file submitted 9 working days before the meeting;
– after approval, the advance payment of the authorization fee is made;
– the date 1st, of the month following the month in which the payment was made, the interval of the 90 days of extension must be found;
b) The annual operating license is valid during the state of emergency
– the fiscal receivable, regarding the monthly or quarterly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated;
– the payment of the monthly or quarterly authorization fee is made, within 30 days from the lifting of the state of emergency;
– does not owe fees related to gambling operating authorizations for the entire period of the state of emergency – valid for flat-rate authorization fees;
– a copy of the tax return or any other amendments thereto, as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made.
B) Online gambling
a) The annual operating license expires during the state of emergency
– it is extended by law by 90 days, after the cessation of the state of emergency;
– the fiscal claim, regarding the monthly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated;
– the monthly authorization fee is paid;
– a copy of the tax return or any other amendments thereto as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made;
– the reauthorization file is prepared within this 90-day period;
– a new authorization is requested from the Supervisory Committee, a complete file submitted 9 working days before the meeting;
– after approval, the advance payment of the authorization fee is made;
– the date 1st, of the month following the month in which the payment was made, the interval of the 90 days of extension must be found;
b) The annual operating license is valid during the state of emergency
– the fiscal claim, regarding the monthly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated;
– the monthly authorization fee is paid;
– a copy of the tax return or any other amendments thereto, as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made.
Note:
For due tax obligations, starting with March 21, 2020 and unpaid up to 30 days from the end of the state of emergency, no interest and delay penalties are calculated and not due.
By way of derogation from the provisions of the Fiscal Procedure Code, according to which: outstanding tax obligations are tax obligations for which the due date or payment term has expired, fiscal obligations due, starting with March 21, 2020 and unpaid up to 30 days from termination emergency, are not considered outstanding tax obligations.
Important: the tax returns by which the tax claim is constituted are submitted within the legal term, but between March 21, 2020 – up to 30 days from the end of the state of emergency, these tax obligations are not considered to be outstanding tax obligations, because: the provisions of art. VII of GEO 29 of 2020 are also valid for gambling organizers:
„Article VII
(1) For the fiscal obligations due starting with the date of entry into force of this emergency ordinance and not paid until the termination, according to par. (4), of the measures provided for in this Article no interest and late payment penalties are calculated and due according to the Fiscal Procedure Code, approved by Law no. 207/2015, with subsequent amendments and completions.
(2) By derogation from the provisions of art. 157 para. (1) lit. a) of Law no. 207/2015 on the Fiscal Procedure Code, with subsequent amendments and completions, the fiscal obligations provided in par. (1) no outstanding tax obligations are considered.
(3) The measures of forced execution by seizure of the budgetary receivables are suspended or not, except for the forced executions that are applied for the recovery of the budgetary receivables established by court decisions pronounced in criminal matter. The measures of suspension of the forced execution by seizure on the traceable amounts representing incomes and cash availabilities are applied, by the effect of the law, by the credit institutions or seized third parties, without other formalities from the fiscal bodies.
(4) The fiscal measures provided in par. (1)-(3) cease within 30 days of the cessation of the state of emergency.” Hypothetical cases – implementation of the measures adopted
– Emergency period – 60 days, from March 16, 2020 – to May 14, 2020;
– 90 days from the end of the state of emergency – from May 15, 2020 to August 12, 2020;
I. License to organize gambling – common behavior – for traditional and online gambling
a) The 10-year validity period expires during the state of emergency (unlikely):
– is extended by law by 90 days, after the cessation of the state of emergency – until August 12, 2020;
– the re-licensing file is being prepared within this 90-day period, June or July 2020;
– a new license is requested from the Supervisory Committee, a complete file submitted 9 working days before the meeting – the meeting in June or July;
– after approval, the advance payment of the annual license fee shall be declared and made no later than July 25, if the file is approved in June or July 31, if the file is approved in July 2020;
– the date of entry into force of the license obtained – August 1, 2020, the first date of the month following that in which the payment was made, the 90-day extension period must be found.
b) License valid during the state of emergency – 10 days before the expiration of the previous licensing year:
– the tax claim, regarding the annual license fee, is established by the taxpayer’s tax return;
– the amount of the fiscal obligation is calculated;
– the annual license fee is paid;
– a copy of the tax return or any other amendments thereto, as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made.
II. Authorization to operate
gambling – different behavior
A) Traditional gambling
a) The annual operating license expires during the state of emergency
– it is legally extended by 90 days, after the cessation of the state of emergency – until August 12, 2020;
– the tax receivable, regarding the monthly or quarterly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated; Example for slot machine (corrigendum to D-100 of March 25, 2020): 3.600 euro x 4,6605 = 16.779 lei/yr : 4 = 4.194 lei/Q. Recalculation and regularization of effective operation period: 4.194 : 91 days = 46 lei x number of days of effective operation, until the entry into force of the authorization of the following year, lei/machine;
– the payment of the monthly or quarterly authorization fee is made, within 30 days from the lifting of the state of emergency – until June 12, 2020;
– does not owe fees related to gambling operating authorizations for the entire period of the state of emergency, respectively for the period March 16 – May 14, 2020 and is valid for flat-rate authorization fees;
– a copy of the tax return or any other amendments thereto as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made;
– the re-authorization file is prepared within this 90-day period in June or July 2020;
– a new authorization is requested from the Supervisory Committee, a full dossier submitted 9 working days before the meeting, for the committee meeting in June or July 2020;
– after approval, the advance payment of the authorization fee shall be made, at the latest by July 25, if the dossier was approved in June or by July 31, 2020, if the approval was in July 2020;
– the date of entry into force of the authorization is August 1, 2020, the first date of the month following that in which the payment was made, the 90-day extension period must be found;
b) The annual operating license is valid during the state of emergency
– the tax receivable, regarding the monthly or quarterly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated; Example for slot machine, the authorization entered into force after 01.01.2020 (corrigendum to D-100 of March 25, 2020): 3.600 euro x 4,7511 = 17.104 lei/yr : 4 = 4.276 lei/Q. Recalculation and regularization of effective operating period: 4.276 : 91 days = 47 lei x 31 (number of days of actual operation in the second quarter of 2020) = 1.457 lei/machine;
– the payment of the monthly or quarterly authorization fee is made, within 30 days from the lifting of the state of emergency – until June 12, 2020;
– does not owe fees related to gambling operating authorizations for the entire period of the state of emergency, respectively for the period March 16 – May 14, 2020 and is valid for flat-rate authorization fees;
– a copy of the tax return or any other amendments thereto as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made;
B) Online gambling
a) The annual operating license expires during the state of emergency
– is extended by law by 90 days, after the cessation of the state of emergency, until August 12, 2020;
– the fiscal claim, regarding the monthly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated;
– the monthly authorization fee is paid;
– copy of the tax return or any other amendments thereto as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made;
– the re-authorization file is prepared within this 90-day period in June or July 2020;
– a new authorization is requested from the Supervisory Committee, a full dossier submitted 9 working days before the meeting, for the committee meeting in June or July 2020;
– after approval, the advance payment of the authorization fee shall be made, at the latest by July 25, if the file was approved in June or by July 31, 2020, if the approval was in July 2020;
– the date of entry into force of the authorization is August 1, 2020, the first date of the month following that in which the payment was made, the 90-day extension period must be found;
b) The annual operating license is valid during the state of emergency
– the fiscal claim, regarding the monthly authorization fee, is established by the taxpayer’s tax return within the terms provided by law;
– the amount of the fiscal obligation is calculated;
– the monthly authorization fee is paid;
– a copy of the tax return or any other amendments thereto, as well as a copy of the related payment document, shall be sent to the ONJN, within 5 days from the date on which the payment was made.
