Hategan Attorneys through the Tax Department won in the first instance at the Timis Court, an important lawsuit against ANAF, DGFP Timis, representing one of the largest developers of renewable energy projects in the West. Thus, the Timis Tribunal decided that several components of the photovoltaic park can not be considered as constructions, thus avoiding the increase of the building tax due. This court judgment could have a major impact on the renewable energy industry.
With special regulations on building tax, developers of photovoltaic parks place some high-end park components (including photovoltaic panels) in the equipment group, and others in the construction group.
In 2016, the tax authority conducted a check at the client of Hategan Attoneys. As a result of the control, the company was obliged to re-incorporate several assets belonging to the Technological Equipment category in the Construction group, subgroup 1.7.3. This approach would automatically generate the obligation to increase the tax base taken into account when determining the tax on construction applicable between 2014 and 2015. Thus, the company had to pay differences of approx. RON 1 million plus interest, increases and penalties.
"I have shown before the Timis Court that certain components of the photovoltaic park (including photovoltaic panels) can not be considered as constructions. In confirming our statements, we have highlighted the conclusions of the assessment report and the technical-economic report, drawn up prior to the tax audit by experts in the field, but which the tax authority did not take into account when issuing the measure. Although the decision is not yet final, and in accordance with the practice of the tax authority, we expect an appeal to be lodged, we consider that there are extremely high chances for those retained by the first instance to remain in the way of appeal, "said Alexandra Jivan, Partner of Haţegan Attorneys and Coordinator of the Tax Department.
Haţegan Attorneys is an independent law firm located in Timisoara, established in 2004 that provides an integrated range of legal services to meet the needs of companies, individuals and organizations both in Romania and internationally.