The High Court of Cassation of Justice ruled that the National Tax Administration Agency (ANAF) is to pay default interest to a company represented by D&B David şi Baias lawyers in a case of late VAT refund.
D&B David şi Baias lawyers assisted a company in the proceedings to obligate the tax authorities to pay default interest on a late VAT refund pursuant to the unjustified prorogation of the documentary audit of VAT returns and, subsequently, to the early tax inspection triggered in respect of the same returns.
In the first instance, the Bucharest Court of Appeal partially admitted the company’s petition, and obligated ANAF to pay default interest of Ron 2 million.
Pursuant to ANAF’s higher appeal, the High Court of Cassation and Justice admitted all counts of the company’s petition, and obligated ANAF to pay default interest amounting to about Ron 5 million.
The argumentation of D&B David şi Baias lawyers in this case focused on the case law of the Court of Justice of the European Union, in particular the Steaua Română case, also represented by D&B lawyers, according to which, as a rule, the internal procedures of the tax authorities having caused the late VAT return cannot suspend the accrual of default interest on amounts not refunded in due time.
The team of lawyers that represented the company in this case was composed of Dan Dascălu, Partner at D&B David şi Baias, coordinator of the tax litigation department, and Mihail Boian, Associate Attorney at D&B David şi Baias.