Current report - Case filed for cancelling the taxation decision for tax liabilities

Tue 12/17/2024 4:02PM

Important event to be reported: Case filed for cancelling the taxation decision for tax liabilities

By the current reports no. 17/04.03.2024 and no. 36/18.06.2024, the Company ALRO S.A. has brought to the attention of the investors and general public that following and audit carried out between 2023-2024 by ANAF – Directorate for Large Taxpayers, examining the period 2016-2021, the Company has received an additional taxation notice in amount of RON 13,550,671, representing additional profit tax and VAT, decision which is considered by the Company as being profoundly unsubstantiated and illegal.

Within the timeframe provided by the law, a claim was filed by the Company against the taxation decision as well as the decision on ancillary tax liabilities, through administrative channels to the Ministry of Finances, and after making a resolution on the claim, the Ministry of Finances rejected ALRO’s requests, except for the reduction of profit tax ancillary liabilities related to the year 2021, in amount of RON 20,050. 

With regards to this decision, the Company ALRO S.A. will use every legal means for the cancellation of the decision.

With respect to this resolution, the Company ALRO SA using all legal means in order to have it cancelled, filed, on December 16th 2024 to Craiova Court of Appeal, a petition against the Ministry of Public Finances -  General Directorate for Claims solving, General Directorate for Administration of Large Taxpayers (DGAMC), National Tax Administration Agency, on the following subject case: 

1. Partial annulment of Settlement Decision no. 2127 dated 12.06.2024 issued by DGSC and brought to the general public’s attention by Alro on 17.06.2024, as regards the item 1 and 2 in which Alro’s appeal registered with DGSC under no. M_SLP818697/09.05.2024 was rejected namely:
   1. Item 1 in which Alro’s appeal against the Taxation Decision no. F-MC nr. 16/21.02.2024 and against the Decision no. 861/18.03.2024 on ancillary tax liabilities representing penalties that were not declared was rejected in full as being groundless; 
   2. Item 2 in which Alro’s appeal against the Decision no. 861/18.03.2024 on ancillary tax liabilities representing interest and delay penalties was partially rejected as being groundless.
2. Annulment in full of Taxation Decision for main tax liabilities related to the diffrerences of the taxation bases set up in the legal entities tax inspection no.  F-MC 16/21.02.2024 and Report of tax Inspection no. F-MC-17/21.02.2024:
   1. As regards the setting up of an additional tax basis related to a profit tax in total amount of 40,347,218 RON and a profit tax in total amount of 6,455,555 RON,
   2. As regards the setting up of an additional tax basis related to the value added tax in total amount of 37.340.779 RON and a value added tax in total amount of 7,095,116 RON.
3. Partial annulment of the Decision no. 861/18.03.2024 for ancillary tax liabilities representing interest and delay penalties related to the amount of 4,246,001 RON, accounting for interest rates on main tax liabilities consisting of profit tax and VAT.  
4. Annulment of the Decision nr. 861/18.03.2024 for ancillary tax liabilities representing penalties that were not declared, with respect to the amount of 12,407,258 RON accounting for penalties that were not declared, related to the main tax liabilities consisting of additional profit tax and VAT set up by the Taxation Decision. 
5. The defendants be ordered to pay back the amounts that Alro was charged with as main tax liabilities in total amount of 13,550,671 RON consisting of profit tax totally amounting to 6,455,555 RON and value added tax totally amounting to 7,095,116 RON, as well as to pay back the ancillay tax liabilities in total amount of 1,752,041 RON consiting of interest rates totally amounting to 718.105 RON and penalties totally amounting to 1,033,936 RON, amounts which have been paid by Alro; alongside the interest calculated from the date the payment of undue liabilities was made until the date of actual reimbursement of such amounts, as per provisions of art. 182 para. (2) of the Tax Procedure Code.
6. The defendants be ordered to pay pay the legal expenses related to this case, as per the provisions of art. 453 of the Civil Procedure Code. 

As regards the status of the aforementioned litigation, ALRO S.A. will inform the general public and investors in due course.