On October 31, the Senate adopted the draft Prevention Law, based on which companies will not be fined by tax inspectors, but will instead have a certain interval at their disposal to resolve issues.
After approval by the Senate, the project will be sent for debate to the Chamber of Deputies, where it could undergo new modifications.
A final modification brought to the project provides that the irregularities for which companies will not be fined cannot be modified by the Executive through a simple Government Decision, as the bill currently provides.
As approved by the Government, the draft Prevention Law contains in Annex 1 all the irregularities for which a company benefits from a 90-day remediation period. According to the project, that annex can be modified and completed by the Government, after the law’s approval, through a simple Government Decision.
Senators from the budget committee and those from the legal committee approved, on October 30, an amendment by which this provision was removed from the law, and consequently, the Government can no longer introduce changes to the list of sanctions without them being approved by Parliament.
Senators from the legal committee approved, on Monday, all the modifications proposed by the senators from the budget committee.
The elected officials considered it appropriate for seaside hoteliers to also benefit from the Prevention Law, as they were fined if they did not ensure the operation of hotels during the period of May 1 – September 30. Considering that between May 1 – June 15 and September 15 – 30, due to the low number of tourists, hoteliers have difficulties in covering operating costs, the senators in the committee approved an amendment so that those companies benefit from the law.
Also, contraventions provided in connection with the obligation of economic operators to use electronic cash registers will benefit from 90 days for remediation.
Furthermore, deviations currently provided in the law regarding compliance with supervision, recruitment, and transparency procedures concerning the management of state-owned companies will no longer benefit from the grace period. At the same time, certain norms regarding quality in construction were exempted from the milder provisions of the Prevention Law.
Source: Profit
Frequently Asked Questions
What is the Prevention Law?
The Prevention Law is a legislative act that allows companies to correct specific fiscal irregularities within a set timeframe without being immediately fined.
How much time do companies have to fix issues?
Under the current draft, businesses are granted a 90-day remediation period to resolve identified problems before penalties are applied.
Which sectors are excluded from this law?
Exclusions include violations related to state-owned company management transparency and certain standards regarding construction quality.