The lawyers from STOICA & ASSOCIAȚII succeeded, at first instance, in obtaining the suspension of the enforcement of the rules requiring economic operators in the distribution chain of excise products to include the amount of excise duty in the basis of calculation of the minimum tax on turnover (“IMCA”).
By Decision No 1393/2024, the Government limited the scope of taxpayers entitled to deduct the amount of excise duties paid to the Romanian State from the AMT assessment base to excise duty payers only. This untimely measure has had a very serious impact on the organisation of the activities of economic operators in the entire excise goods distribution chain. However, the primary legislation does not expressly limit the scope of the persons who may deduct the amount of excise duty from the base for calculating the HCAA.
The methodological rules have been suspended from application pending the outcome of the annulment action, following the successful outcome of a lawsuit in which STOICA & ASOCIAȚII represented a major company distributing excise goods. The judgement handed down by the Bucharest Court of Appeal is enforceable and represents an interim measure of protection for the taxpayer who has appealed to the court.
“Obtaining this solution, even if subject to appeal, is very important for the company we represent. The suspended rule had major effects on the basis of calculation of the IMCA and implicitly on the amount of the tax, with consequences on the estimated profit margin from the activity of distribution of excise products. Such unforeseeable and contradictory changes may jeopardise the equilibrium of the specific market, all the more so as the suspended rule introduces a veritable ‘tax on tax’, in breach of essential principles such as the fair apportionment of the tax burden and the rules of competition. The success in court is the result of excellent co-operation between STOICA & ASOCIAȚII lawyers and the project co-ordination team of the economic operator. Valeriu Stoica (Founding Partner) and Constantin Cosmin Pintilie (Managing Associate) were part of the legal team, together with me, and I also benefited from the valuable contribution of other colleagues, taking into account the high degree of complexity of the economic and legal defences necessary in building the case” explained Andreea Stoica, Managing Partner STOICA & ASOCIAȚII.
The first instance judgement suspending the execution of Government Decision no. 1393/2024 is of interest to all actors in the distribution chain of excise products, who are liable to pay the minimum turnover tax, all the more so as the suspension of the effects of certain normative acts is less frequently obtained through the courts.
Established in 1995, STOICA & ASOCIAȚII has gained national and international recognition in the world of law and business, through its entire activity of legal assistance and representation of a vast portfolio of clients. From its foundation to the present day, the lawyers of STOICA & ASSOCIATES have proved to be a strong team, founded on the respect of its principles: Fidelitas, Integritas, Fortitudo. STOICA & ASSOCIATES has acquired an excellent national and international reputation. Its professional performances are recognised in the most important legal guides: Chambers Europe, Legal 500, WTR 1000, IAM Patent 1000.
