ANAF tax inspection: what inspectors check, what your rights are and how to prepare

1. Why someone ends up on ANAF’s radar. Types of tax controls

ANAF does not come “randomly” for an inspection. Selecting taxpayers for tax audits is done, in principle, based on a risk analysis, regulated by art. 121 of the Fiscal Procedure Code^[2]. ANAF uses information from tax returns, financial statements, reports from other authorities, complaints or even automatic exchange of information with other states.

In practice, you may be classified as high‑risk because:

• there are large differences between turnovers in bank accounts and the income declared;
• you have declared tax losses for a long period while still being active;
• you have business relationships with high‑risk companies (shell entities, “missing traders”, intermediaries);
• you request significant VAT refunds or you are involved in complex transaction chains;
• there are reports from other authorities or from individuals;
• for individuals, your lifestyle does not seem to match your declared income (properties, expensive cars, high account balances vs. low official income).

The Fiscal Procedure Code regulates several types of control^[3]:

• tax inspection (general or partial) – the classic form of audit, governed by art. 113–133 FPC;
• unannounced control – quick checks without a prior notice, for specific situations (art. 134–135 FPC);
• anti‑fraud control – carried out by the General Anti‑Fraud Directorate, regulated by art. 136–137¹ FPC;
• verification of personal tax situation for individuals – art. 138–147 FPC;
• desk‑based verification – documentary checks, regulated by art. 148–149 FPC.

In what follows we focus on the classic tax inspection, where the taxpayer receives an inspection notice, inspectors request documents, work at the taxpayer’s premises or at the ANAF office and, in the end, issue a report and an assessment decision (or a decision not to amend tax liabilities).

2. Legal framework: Fiscal Procedure Code, taxpayer charters and other acts

The main legal basis for tax inspection is the Fiscal Procedure Code, adopted by Law no. 207/2015^[1]. In Title VI – Tax control – you will find detailed rules on:

• the object of tax inspections (art. 113 FPC);
• persons subject to inspections (art. 114 FPC);
• forms and scope of inspections (art. 115 FPC);
• selection of taxpayers (art. 121 FPC);
• the tax inspection notice (art. 122 FPC);
• duration of the inspection (art. 126 FPC);
• the taxpayer’s right to be informed and the inspection report (art. 130–131 FPC).

In addition to the Code, there are specific acts where ANAF details taxpayers’ rights and obligations during inspections:

• Charter of taxpayers’ rights and obligations during tax inspections, approved by ANAF Order no. 713/2004, published in the Official Gazette no. 977/2004, available on the Romanian legislation portal^[4];
• Charter of the rights and obligations of individuals subject to verification of their personal tax situation, approved by Order no. 1162/2016^[5];
• ANAF Guide to tax inspection, with practical explanations on selection, conduct and finalisation of audits (QW24 – Guide for tax inspection^[6]).

Understanding these documents is essential for anyone who wants to defend their tax position properly during an ANAF audit, and also for knowing how far an inspection can go and when it is time to consider administrative appeals or even court action (based on Law no. 554/2004 on administrative litigation^[7]).

3. Stages of an ANAF tax inspection

A typical tax inspection goes through several stages, laid down in the Fiscal Procedure Code and detailed in ANAF’s guides:

1. selection based on risk analysis and, where applicable, sending a compliance notice;
2. sending the tax inspection notice (15/30 days before the start date);
3. actual start and conduct of the inspection (at the taxpayer’s premises or at ANAF);
4. final discussion and communication of the draft inspection report;
5. final inspection report and assessment decision / decision not to amend the tax base;
6. possible administrative appeals and court litigation.

3.1. Selection and the compliance notice

According to art. 121 FPC, taxpayers are selected for tax inspections primarily based on a risk analysis. Before starting an on‑site audit, ANAF may send a compliance notice, expressly regulated in art. 121¹ FPC^[8].

By way of a compliance notice, the tax authority:

• informs you that you have been identified as high‑risk in certain areas (for example, VAT, corporate income tax, personal income tax);
• gives you a deadline (usually 30 days) to file or correct tax returns;
• points out that you can voluntarily correct potential errors before a full inspection starts.

Important: replying to the notice and correcting returns does not mean that ANAF can no longer audit you. The Code expressly states that, after the deadline, taxpayers with high fiscal risk may be subject to a tax inspection or desk‑based verification. Still, voluntary correction can significantly reduce the risk of non‑declaration penalties and even of criminal complaints.

3.2. The tax inspection notice

Before starting the inspection, ANAF must send you a tax inspection notice, regulated by art. 122 FPC^[2]. The notice must reach you:

• at least 30 days before the start of the inspection, if you are a large taxpayer;
• at least 15 days before, for other taxpayers.

The notice must contain, at least:

• the legal basis for the inspection (usually the relevant articles in the Fiscal Procedure Code);
• the start date of the inspection;
• the tax liabilities and periods to be audited (for example “VAT 2022–2023”);
• information that you can request postponement of the start date for justified reasons;
• information that you may file or correct tax returns up to the start date of the inspection.

Together with the notice, you should receive the Charter of taxpayers’ rights and obligations during tax inspections (ANAF Order no. 713/2004, Official Gazette no. 977/2004, available here^[4]), which sets out in accessible language the main rights (to be informed, to be audited only once per tax and period, to receive proof of documents retained by inspectors, etc.).

You may request, once only, postponement of the inspection start date for justified reasons (for example, your accountant is on holiday, you are in hospital, you genuinely need time to prepare documents). The request is decided by the management of the tax inspection department, according to art. 122 para. (5) FPC^[2].

3.3. Start and conduct of the inspection

The inspection actually starts on the date stated in the notice or on the rescheduled date. The general rule is that it is carried out at the tax authority’s premises, but at the taxpayer’s request or on ANAF’s initiative it may also take place at the taxpayer’s premises or at another agreed location (art. 125 FPC^[9]).

At the beginning, inspectors should:

• identify themselves and present their service order and the tax inspection notice;
• explain, in an initial discussion, the object and period of the inspection;
• agree with you or your representative on a modus operandi (where the work will be done, who the contact person is, how documents will be handed over, etc.).

During the inspection, the taxpayer has both obligations and rights.

Main obligations are laid down in art. 124 FPC and in the Charter of taxpayers^[4]:

• to allow inspectors access to the premises where you carry out your activity or where taxable assets are located;
• to provide accounting documents, contracts, ledgers, electronic records;
• to provide a workspace and logistical support if the inspection is carried out at your premises;
• to respond to requests for information within a reasonable deadline;
• not to obstruct the inspection (systematic refusal to provide documents may lead to fines or, in severe cases, even criminal liability).

Main rights of the taxpayer are found in several articles of the Code (including art. 130 FPC^[9]) and detailed in the Charter:

• right to be informed about the purpose and scope of the inspection, as well as about interim and final findings;
• right to be audited only once for each tax and period, except in cases expressly provided by law (re‑audit/re‑inspection – art. 128–129 FPC);
• right to specialised or legal assistance – you may be assisted by an accountant, tax consultant or lawyer throughout the inspection (art. 123 para. (3) FPC);
• right to be the first person requested to provide information – before contacting third parties, the tax authority must ask you for relevant information^[4];
• right to tax secrecy – information about you cannot be disclosed, except in situations expressly provided by law (art. 11 FPC);
• right to written proof for documents retained by inspectors^[4];
• right to express your point of view on the findings in the draft inspection report.

3.4. Duration of the tax inspection

The maximum duration of a tax inspection is regulated by art. 126 FPC^[9]:

• 180 days for large taxpayers, taxpayers with secondary offices and non‑residents;
• 90 days for medium‑sized taxpayers;
• 45 days for other taxpayers.

If the inspection is not completed within a period representing twice these time limits (excluding legally suspended periods), the law states that the inspection must cease without issuing a report and an assessment decision, and ANAF may restart the inspection only once, under specific conditions.

3.5. Final discussion and inspection report

At the end of the inspection, the tax authority communicates the draft inspection report and invites you to a final discussion, in line with art. 130 FPC^[9]. The purpose is to clearly inform you about the conclusions and to give you the opportunity to submit a point of view.

You have the right to:

• participate in the final discussion or waive it (by written notice);
• submit, within 5 working days from the end of the inspection, a written point of view on the findings (this deadline may be extended for justified reasons);
• request clarifications or re‑assessment of certain aspects in light of additional documents.

The final result is set out in a tax inspection report, which presents factual and legal findings and their tax consequences, in accordance with art. 131 FPC^[9]. On the basis of the report, ANAF usually issues an assessment decision (if additional tax liabilities are established) or a decision not to amend the tax base (if no changes are made).

4. What tax inspectors actually check

During an inspection, ANAF looks at both form (existence and correctness of documents) and substance (whether transactions are real, have economic purpose and do not hide artificial tax minimisation schemes). Typical topics include:

4.1. At company level (SRL, SA, PFA, liberal professions)

• VAT:
  • whether you are entitled to deduct input VAT (inspectors check existence and reality of transactions);
  • whether you have correctly declared output VAT from sales (invoices, cash receipts, online sales);
  • whether there are invoices received from high‑risk suppliers (shell companies, missing traders).
• Corporate income tax / micro‑enterprise tax:
  • deductible vs. non‑deductible expenses (protocol, sponsorship, depreciation, provisions);
  • tax treatment of service, consultancy and management contracts;
  • transactions with related parties and transfer pricing (transfer pricing documentation for certain categories of taxpayers).
• Payroll taxes and social contributions:
  • correct classification of work relationships (risk of undeclared or disguised employment);
  • calculation and payment of contributions (pension, health, labour insurance);
  • benefits in kind and other advantages granted to employees.
• Dividend tax and other withholding taxes:
  • distribution of dividends and declaration of the related tax;
  • withholding taxes for non‑residents, where applicable (application of double taxation treaties).

4.2. At individual level

Within the verification of personal tax situation, the central tax authority may analyse, under the individual’s Charter^[5] and art. 138–147 FPC:

• all property rights and obligations (real estate, cars, shareholdings, bank accounts);
• cash flows (incoming and outgoing payments, including between personal accounts and company accounts where you are shareholder);
• other relevant elements (loans, deposits, investments, real estate transactions etc.).

The aim is to determine whether declared income is sufficient to justify expenses and asset accumulation. If not, ANAF may establish additional personal income tax, interest and penalties, and in serious cases may report the case to criminal authorities.

5. Interest, penalties and other consequences after the inspection

If the inspection finds under‑declared or unpaid tax, the inspection report will be followed by an assessment decision, which sets the additional tax liabilities, to which ANAF adds:

• interest – regulated in art. 173–175 FPC, at a rate of 0.02% per day of delay^[10];
• late‑payment penalties – in art. 176 FPC, at 0.01% per day of delay^[10];
• non‑declaration penalty – provided in art. 181 FPC, of 0.08% per day of under‑declared or undeclared tax^[11], with the possibility of a 75% reduction if the amounts are paid or rescheduled.

In addition to these accessories, ANAF may:

• order precautionary measures (garnishments, seizure) and then enforced collection – under Title VII FPC (art. 152–267);
• report the case to criminal authorities, where there are suspicions of offences such as those in Law no. 241/2005 on tax evasion (art. 8–9);
• for individuals, adjust the tax base using indirect methods in the verification of personal tax situation.

For this reason, it is essential to treat the inspection, from the beginning, as a potential future dispute and to build your evidence: documents, written explanations, correspondence with inspectors, explanatory notes.

6. From inspection to appeal and court: what to do if you disagree

If you disagree with the conclusions of the report and the assessment decision, you are not required to simply “accept your fate”. The Romanian tax system provides for a mandatory administrative appeal followed, where necessary, by court action.

6.1. Administrative appeal

The rules on tax appeals are laid down in Title VIII of the Fiscal Procedure Code, and the deadline for lodging an appeal is set out in art. 270 FPC^[12]:

• 45 days from the date of communication of the tax administrative act (assessment decision, decision concluding the inspection, etc.);
• if the act does not contain information on the appeal deadline, the deadline may be 3 months from communication;
• the appeal is lodged with the tax authority that issued the contested act, which forwards it to the competent appeals department.

The appeal is a mandatory step before going to the administrative‑tax court. In your appeal you must put forward factual and legal arguments, preferably supported by expert opinions (audit reports, tax opinions, doctrinal sources), to show why ANAF’s interpretation of the law or its assessment of the facts is wrong.

The Ministry of Finance also offers a short overview of the appeal rules on its official website, in the section on tax appeals^[12].

6.2. Court action in administrative‑tax litigation

If the appeal decision is unsatisfactory or the appeal is rejected, the next step is court action, based on Law no. 554/2004 on administrative litigation^[7]. Tax disputes are heard, at first instance, by the administrative‑tax sections of tribunals or courts of appeal, depending on jurisdiction rules.

In court you may request:

• annulment or amendment of the assessment decision and other tax acts;
• restoration of your tax situation (for example, recognition of deductibility for certain expenses, recalculation of tax base);
• repayment of tax paid unlawfully (principal and accessories);
• suspension of enforcement of the tax act, under art. 14–15 of Law no. 554/2004, if you can show a strong prima facie case and risk of imminent damage.

At this stage, the role of a lawyer specialised in administrative‑tax litigation is crucial, because these disputes involve not only knowledge of tax law, but also of procedural rules (deadlines, evidence, case‑law, procedural exceptions).

7. How to prepare, in practice, for an ANAF tax inspection

Beyond legal provisions, preparing for an audit is primarily about organisation and strategy. A few practical guidelines:

7.1. For entrepreneurs and companies

• Archive your documents properly: contracts, invoices, bank statements, ledgers, financial statements, supporting documents (orders, goods receipt notes, minutes, logbooks). Keeping both physical and electronic versions, properly indexed, greatly reduces stress during an inspection.
• Identify risk areas together with your accountant and, ideally, a tax consultant or lawyer (deductibility of certain expenses, income treatment, intra‑group transactions, relations with non‑residents).
• Simulate an internal audit: check whether documents support the tax returns. Ask yourself: “If an inspector were to ask me today to justify this expense or this income, what exactly would I show?”
• Appoint a person responsible for dealing with ANAF: someone (director, accountant, CFO) to coordinate responses and the submission of documents, in order to avoid contradictory information.
• Do not ignore notices: compliance notices, requests for clarification or summons sent before an inspection can be opportunities to correct issues before they escalate.

7.2. For individuals

• Document your sources of income: employment contracts, services contracts, copyright licence agreements, evidence of loans granted/received, donations, etc.
• Keep track of large transactions: purchase and sale of real estate, cars, investments in securities, crypto assets, savings accounts.
• Explain flows between accounts: frequent transfers between your personal accounts and company accounts must have a legal and accounting basis (dividends, shareholder loans, repayment of loans, etc.).
• Consult a specialist early if you know that you have had unusual income or a significant increase in assets in a short time.

7.3. Communication strategy with inspectors

• Be honest, but do not say more than necessary: answer questions, provide requested documents, but avoid speculation and unstructured personal opinions.
• Request written clarification for requests that seem excessive or unclear; keep a log of the inspection (dates, documents requested, responses provided).
• Clearly state your position in writing, preferably with the help of a lawyer or tax consultant, citing legal provisions, methodological norms, ANAF circulars and case‑law where relevant.

8. The lawyer’s role during inspections and in tax litigation

A tax inspection is not just about accounting. It is underpinned by a complex administrative procedure, strictly regulated by the Fiscal Procedure Code, the Administrative Litigation Law and a series of ANAF orders, circulars and guides. A lawyer specialised in tax and administrative litigation can assist you at several stages:

• before the inspection – preventive audit, identification of risk areas, structuring documentation, designing a strategy;
• during the inspection – assisting in discussions, drafting responses and written positions, invoking taxpayer rights, challenging certain interpretations;
• at the final discussion and report stage – drafting the written point of view, identifying factual and legal errors, preparing for a potential appeal;
• in the administrative appeal – drafting the appeal, building legal and economic arguments, relying on national and EU case‑law;
• in court – structuring the claim, managing evidence, presenting the case in hearings, filing requests to suspend enforcement.

In essence, the lawyer is the bridge between the accounting language and the legal language, translating technical findings into legal terms and building your defence on solid arguments, verifiable in legislation and case‑law.

9. Conclusions

An ANAF tax inspection should not be seen purely as an “enemy”, but neither should it be underestimated. It is a process in which, if you do not know your rights, obligations and defence tools, you risk bearing significant financial consequences and, in some cases, even facing criminal exposure.

The keys to a sound approach are:

• transparency and discipline in accounting and tax records;
• quick reaction to notices, inspection letters and requests from ANAF;
• early involvement of a tax consultant and a lawyer, not only after receiving the assessment decision;
• using legal procedures (appeal, court action, requests for suspension) whenever you consider that the tax authority has misapplied the law or misinterpreted your situation.

A well‑managed tax inspection may end with minimal or even no adjustments, and in genuine disputes on legal interpretation, strategic litigation can correct excesses and build useful case‑law for the future.

FAQ – Frequently asked questions about ANAF tax inspections

Question 1: How long does an ANAF tax inspection last in practice?

The maximum duration is laid down in art. 126 FPC: up to 180 days for large taxpayers, 90 days for medium‑sized taxpayers and 45 days for other taxpayers. In practice, the actual duration depends on the complexity of the activity and the taxpayer’s cooperation. If twice these time limits are exceeded (excluding suspension periods), the inspection must cease without a report and assessment decision, and ANAF may restart the inspection only once, in accordance with the law.

Question 2: Can I refuse access to tax inspectors?

No. You are obliged, under art. 124 FPC, to allow inspectors access to premises where you carry out your activity or where taxable assets are located and to provide requested documents. Refusal may lead to fines or even criminal liability in serious cases. However, you may request that all requests be made in writing, you may be assisted by a lawyer and you may later challenge unlawful acts or abusive measures.

Question 3: Can I postpone the start date of the inspection?

Yes. You may request once the postponement of the start date for justified reasons (illness, absence of the accountant, genuine difficulties in preparing documents). The request is dealt with by the head of the inspection department, and if it is accepted a new start date is set, according to art. 122 para. (5) FPC.

Question 4: What happens if I do not lodge an appeal within the 45‑day deadline?

If you do not lodge an appeal within the 45‑day deadline in art. 270 FPC, you are time‑barred, and the assessment decision becomes final at administrative level. In principle, without going through the appeal procedure you can no longer bring the act before the administrative‑tax court, except in specific situations that must be analysed with a lawyer.

Question 5: Does ANAF have access to my bank accounts?

Yes, within the limits of the law. The Fiscal Procedure Code and banking rules allow ANAF to request information from credit institutions on transactions and account balances, where necessary to establish the true tax situation. This is particularly important in the verification of personal tax situation, where cash flows and their consistency with declared income are analysed.

Question 6: Is it helpful to have a lawyer or tax consultant during the inspection?

Yes. The law expressly recognises your right to be assisted by a lawyer or specialist throughout the inspection (art. 123 para. (3) FPC). In practice, early involvement of a professional helps you formulate answers properly, document your position and prepare a possible appeal or court action if the outcome of the inspection is unfavourable.