What does tax consultancy involve?

With each passing year, the tax system becomes more complex and harder to navigate. For many of us, terms such as "taxes", "tax returns" and "duties" are synonymous with a source of stress and confusion. Tax consultancy, however, can be the guiding light that leads us through this sea of constantly changing tax rules and legislation.

In this article, we will explore in depth the essence of tax consultancy and reveal how this essential service can help both individuals and companies manage their tax affairs efficiently

What is tax consultancy?

Tax consultancy is a professional service specialising in the provision of advice, assistance and expertise in the field of taxation. It involves understanding and interpreting tax legislation, regulations and tax codes in order to help individuals, companies and other entities manage their tax affairs efficiently and in compliance with the law.

The main role of tax consultancy is to help clients optimise their tax position, lawfully minimise their taxes and avoid tax errors. This can be essential to achieving financial objectives, such as saving money, avoiding tax penalties or complying with tax rules in an efficient manner.

Who can provide this service?

There is a set of criteria to be met in order to provide this service and, according to the Ordonanței privind organizarea și exercitarea activității de consultanță fiscală (Ordinance on the organisation and exercise of tax consultancy activity), these are:

hold a degree from a faculty of economics and/or law;
have at least 5 years' experience in one of the following activities: drafting and applying tax legislation, administering and collecting public revenues, tax audit, resolving appeals, drafting and applying accounting regulations, as well as financial and accounting work;
have no criminal record;
have full legal capacity;
pass the examination for obtaining the status of tax consultant.

The law firm Buju Stanciu & Associates is dedicated to delivering the highest standards of expertise in tax and legal consultancy. With a team of professionals of vast experience and solid qualifications, we are here to help you achieve your financial and legal objectives.

What are the main services offered within tax consultancy?

Tax consultancy offers a wide range of services to help individuals, companies and other entities manage their tax affairs efficiently. The main services offered within tax consultancy include:

Preparing and filing tax returns; Tax consultants help clients complete and file tax returns in accordance with legal requirements. This includes identifying and applying deductions and tax exemptions in order to reduce taxes.

Tax optimisation: Tax consultants analyse the client's financial position and develop strategies to lawfully minimise taxes, using various tax methods and plans. This may include investment planning, tax succession planning and structuring businesses in a tax-efficient manner.

Tax planning: Tax consultants advise on how to organise a business or personal finances so as to maximise tax benefits. This may involve identifying tax opportunities, such as deductions, exemptions or tax credits.

Assistance in managing tax disputes: When disputes or issues with the tax authorities arise, tax consultants can provide assistance in resolving these situations. This includes responding to tax notices, representing clients before tax agencies and negotiating with the authorities in order to reach favourable outcomes.

Tax audit: Carrying out a tax audit to assess compliance with tax legislation and to identify potential tax issues.

Tax succession planning: For companies and individuals with significant wealth, tax consultancy may involve tax succession planning in order to minimise inheritance taxes and to ensure the efficient transfer of wealth.

Advice on international taxation: For companies with international operations, tax consultants can provide assistance in managing cross-border tax matters and in complying with international tax treaties.

Tax feasibility analysis: Assessing the tax impact of major business or financial decisions before implementing them.

What are the main breaches of the law in the field of tax law?

Breaches of the law in relation to the Codul Fiscal (Tax Code) may include various tax offences, the most notorious of which are money laundering and tax evasion. Here is a description of these two types of breach:

Money laundering:

Money laundering is the process of concealing the unlawful origin of funds or assets so that they appear to have been obtained lawfully.

It generally involves a series of financial transactions or operations designed to obscure the origin of the funds or to conceal their ultimate beneficiary.

Money laundering may include various actions, such as:

Under-reporting income: individuals or companies may under-report income in order to reduce taxes, which may constitute a form of money laundering.

Unusual financial transactions: large and unusual financial operations may raise suspicions of money laundering.

Use of offshore accounts: using accounts in countries with more relaxed tax regulations in order to conceal illegal funds may constitute money laundering.

Tax evasion:

It consists of taxpayers' deliberate actions to avoid paying tax or to unlawfully reduce the amount of tax owed.

This may involve under-reporting income, overstating deductible expenses or other methods of escaping tax liabilities.

Tax evasion can take several forms, including:

Under-reporting income: Individuals and companies may under-report their income in order to pay less tax than they legally owe.

Overstating expenses: Fictitious expenses may be declared or costs exaggerated in order to reduce profits and, implicitly, the tax due.

Transferring assets to countries with more relaxed tax rules: Companies may move assets or profits to countries with lower taxes in order to avoid paying tax in their home countries.

How to choose a tax adviser you can trust

Choosing a tax adviser you can trust is crucial to ensure that you receive sound tax advice and that you comply with tax legislation. Here are a few important steps you can follow in order to choose a trustworthy tax adviser:

Do your research and draw up a list: Start by drawing up a list of potential tax advisers. You can seek recommendations from friends, business associates or lawyers, or you can use online resources such as the websites of tax consultancy associations or client reviews.

Check the qualifications: Make sure the tax adviser has the necessary qualifications and experience. Check whether they are licensed and whether they are a member of a professional tax consultancy or accountancy body.

Relevant experience: Ask about the adviser's experience in the area of tax relevant to your needs. For example, if you are a small business, it would be useful to choose an adviser with experience in advising SMEs.

Check references: Ask for references from the adviser's previous clients and contact those clients to find out about their experience with that adviser.

Check their integrity: Make sure the tax specialist has a reputation for integrity and for complying with tax laws. Check whether they have a criminal record or have been involved in cases of fraud or tax evasion.

Effective communication: Choose a tax adviser who can communicate clearly and effectively. It is important that you can understand their advice and explanations with ease.

Honesty and transparency: Your tax adviser should be honest and transparent about costs and about the way they work. Make sure there are no hidden fees or unpleasant surprises.

Tailoring: Look for an adviser who will take your personal or business needs and objectives into account and offer tailored solutions.

Written contract: Before starting to work together, make sure you have a written contract governing the services provided, the costs, the terms and conditions, as well as the obligations of both parties.

The advantages of working with a tax consultancy specialist

Saving money: A tax consultancy specialist can identify deductions, exemptions and tax credits to which a client may be entitled, which can lead to lower taxes and money saved.

Less stress: Managing tax matters can be complicated and stressful. Working with a tax adviser allows you to focus on other aspects of your life or business, knowing that tax matters are in competent hands.

Specialist expertise: Tax advisers have specialist knowledge and experience in the field of taxation, so that they can offer you the best tax advice and solutions according to your individual or business circumstances.

Compliance with tax rules: A tax adviser can help you avoid tax errors and always comply with the tax legislation in force, thereby reducing the risk of tax penalties.

Handling tax disputes: Should disputes or problems with the tax authorities arise, a tax adviser can provide assistance in resolving these situations, including responding to tax notices and representing you before the tax agencies.

Tailoring: Tax advisers can tailor their advice and solutions to your individual or business needs and objectives.

Tax audits and reviews: The tax adviser can carry out periodic audits and reviews to ensure that you are in compliance with tax legislation and to prepare you for any tax inspections.

Conclusions

In conclusion, tax consultancy is an essential tool for the proper management of tax matters, both for individuals and for companies. Choosing to work with a tax consultancy specialist brings numerous advantages, including saving money, reducing stress and ensuring compliance with tax legislation. Tax advisers provide specialist expertise, develop tailored tax strategies and help clients optimise their tax position.

In addition to the financial benefits, tax consultancy helps to avoid tax problems, reduces the risk of tax penalties and increases transparency and confidence in personal or business tax matters.

If you are looking for a trusted partner in the field of tax consultancy, do not hesitate to contact us. At Buju Stanciu & Associates, we are here to offer you specialist expertise and tailored tax solutions.

Do not put it off, take action now for a safer and more prosperous financial future. Contact us today for tax advice you can trust!