ADJUSTING VAT IN CASE OF INSOLVENCY PROCEDURES UNDER THE ROMANIAN FISCAL CODE AND ACCOUNTANCY LAW
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Authors:
• Lecturer PhD. Liliana MANEA, email: lilyanamanea@yahoo.com, Afiliation: University Athenaeum Bucharest, RomaniaPages:
• 52|59 -
Keywords: insolvency law, VAT adjustments, debts, creditors, financial indicators
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Abstract:
The complexity of the Romanian fiscal legislation rises- up within our days even on the very difficult moments of any company. Fighting for living in case of insolvency has importance not only from creditors perspective but it puts into the light some accounting and fiscal interpretations or misunderstandings with a limited explanation by laws. Our article is trying to find out an accurate pattern for one of the most controversies of VAT area in case of the unpaid debts, when the insolvency procedures are beginning. We make a description of the importance provided by the special law of insolvency to financial documents proving the real value of creditors receivables and analyses how the fiscal law considers the economic diagnose for any suspended execution measures which should be supported by any in debt company. The idea developed throughout is a better understanding of the accounting and fiscal mixture with insolvency law as the financial indicators reflected in accountancy books are not anymore so important as creditors could decide about the value of some debts within the solvency procedure. Therefore, our article aims to present an appropriate opinion about how the fiscal interpretation could increase the company debts if VAT rules are not applied in a suitable way within the economic situation, walking in line with our life’s reality.
