APPRECIATION CONCERNING THE NOTION OF TAX ON TRANSPORT MEANS

Transcription

1 Revista Tinerilor Economişti (The Young Economists Journal) APPRECIATION CONCERNING THE NOTION OF TAX ON TRANSPORT MEANS Ec. Olivia-Elena Manole Ph.D Student University of Craiova Faculty of Economics and Business Administration Craiova, Romania Abstract: The continuous improvement of legislation concerning the assessment, control, retrace and collection of local taxes and rates represents a perpetual concern of the central government in order to avoid miscellaneous interpretations of the current legislation, to extend the tax base and to harmonize with the European Union guidelines. The enhancement of local taxes and rates collection as well as a highly management of efficient local expenditures are the major tasks of the local governments. JEL classification: H21, H23 Key words: the fiscal reform, the tax on transport means, the change on transport means, the fiscal certification, the European Union requirements 1. Introduction The fiscal reform in our country, seen as a priority of harmonization with the European fiscal systems, has triggered frequent changes of the fiscal legislation. The Romanian fiscal legislation has both to comply with the European Union requirements, but also to match with the interests and various aspects encountered in the stages of the country development. Normative documents (laws, decrees, government dispositions, stipulations etc.) which assess taxes and fees which represent the base of the whole fiscal activity, have to present clear, precise, authoritative statements (or explanatory notes) which are not ambiguous and misleading. Also, the final objective of any fiscal stipulation should encourage work development, surplus value and fiscal and social equity. 2. Legal settlements on tax on transport means The revenues of local governments have developed and gradually varied in order to supply the local budget expenditures. In the composition of own fiscal revenues, a significant share is represented by local taxes and fees. After 1989, the tax on transport means, one of the major sources of local own revenues, has been the target of the Romanian fiscal policy, whose major concern was the improvement of legislation on the assessment, control, retrace and collection of this local tax, by virtue of the general obligation of all citizens to contribute to the collection of the financial resources compulsory for the public institutions working The Romanian Constitution revised by the Law 429/2003 approved by the referendum from October the 18 th, 19 th 66

2 67 Management Marketing - Tourism In this respect, in accordance with the principle of oneness of taxes due to local budget, and to extend the tax base, with the law 343/2006, the phrase charge on transport means was replaced with tax on transport means. Thus, motor vehicles become property components and therefore are subject to taxation, and the contribution that the owners of the latter have to make to the local budgets is subjected to the legal settlements on the tax on this kind of incomes 15. Moreover, it has also been regulated the allocation of the pressure of taxation on the owners of dismemberments of the right on property within the agreement of the financial leasing whose object is motor vehicles. In the light of the above, it has also been settled the obligations of the parties of the financial leasing agreement related to the declaration of the financial statement at the financial body within the local government, making precise settlements on its situation 16. The tax on motor vehicles, calculated according to their type and practical use, has to be paid by the owners every year, in two equal trances, due at the 31 of March and the 30 of September included 17. Both the contents of the fiscal law and the arrangements of execution, regulated by the government disposition no.44/2004 concretely specify the assessment of the fiscal load/ pressure and its deduction from taxation, which has the following results 18 : a) Because it is a tax on property, the fiscal load is established by the declaration of the owners of the financial statement at the financial institution/body where the taxpayer has his or her place of residence, within 30 days from the date when they became proprietor, or possessed one of its dismemberments, and the obligation of payment becomes foul, liquid and due on the first day of the following month after the acquisition of the motor vehicle. b) The tax on transport means is no longer required beginning with the first day of the following month after the right of property ceased through: The transfer of the property right to another person that is resident or not, regardless of the ways stipulated by the law; The theft of the vehicle which is subject of taxation, during the whole period of time when the owner was illegally deprived of its good. The validity of the situation can be proven with papers issued by the authorities entitled to investigate the case. Because it is a tax on property 19, one should consider the fact that the law has to be supplemented with new stipulations which exonerate the owner from the tax payment in the following situations: The confiscation of the motor vehicle through a final/irrevocable adjudication; The damage of the whole vehicle in an accident on the road, or by a natural disaster, arson, explosion proven by the papers issued by the insurance agencies or by the legal persons authorized to dismantle motor vehicles; 15 Mehl, L.,Beltrame, P.- Le systeme fiscal français, Puf Paris, The Law 343/2006 referring to the modification and rectification of the Fiscal Code, in M.Of.nr.662/ The Law 571/2003 of the Fiscal Code, in M.Of. nr.927/ H.G. 44/2004 referring to the approval of the methodological norms of the Fiscal Code appliance, in M.Of.nr.112/ Tulai, C., s.a. - Probleme actuale ale fiscalitatii in Finante si Controlul Financiar in actualitate, Targu Mures, 1998

3 Revista Tinerilor Economişti (The Young Economists Journal) The statement of the tax payer that certifies the physical disappearance of the motor-vehicle otherwise than through theft or damage. The paper that certifies the fact that the tax on transport means has no back taxes, is the fiscal certification issued by the authorized fiscal bodies within the local government where the respective motor vehicle is recorded. The validity of the right on property transfer papers between people living depends by the existence of the motor vehicle. This document also authorizes the territorial departments of the Head-Office of Driving Licenses and Motor Vehicle Matriculation Board to matriculate or radiate the motor vehicles from their records. The fiscal certification does not present budgetary debts or claims on litigation, but they mention their existence as well as their ratio. It is also possible to retrace motor vehicles, as goods subject to taxation when the owner changes his or her place of residence, by forcing the latter that within 30 days, to declare his/her new place of residence to the fiscal bodies within the local government new area. 3. The share of the tax on transport means in the total own revenues of the local governments The analysis of the statistical data suggests the fact that the revenues collected as a result of the tax on transport means assessment have gradually developed every year, (they varied from mild lei in 1995 to mild lei in 2004), due to the national car park growth of the individuals and legal persons cars 20. The share of this tax in total local own revenues made up of taxes and charges collected between , has a steady variation between 1999 and 2002, but afterwards it decreases from 11,04% in 2002 to 7,60% in This can be explained by the gradual development of the own revenues as a result of the improvement of the tax assessment and collection system enhanced by the development of the decentralization process and the consolidation of the fiscal autonomy of the local governments recently. Because of the persons and goods transport activity growth, which is a trigger of the Romanian economy progress, in the analyzed period of time, at the national car park has registered a number of motor vehicles cars which is a progressive variation of 4,96% from 2008, in spite of the economic crisis in our country 21. The coming years anticipate an increasing number of the motor vehicle cars because of the initiatives of the development of the road infrastructure programmers, as well as the car production at Dacia Group Renault Pitesti, Ford Craiova and Tractoare Brasov. This situation is statistically presented by the table no.1 and the figure 1. The analysis of the data suggests that the tax on transport means has a significant weight in the total revenues made of local taxes and charges collection. The table 1 and figure 1 also suggest that there are significant variations from one year to another, with an important decrease of the weight of this sum in the total in 1998 and the site of the Minister of the Public Finances 21 The data base of the Head-Office of the Driving Licenses and Auto vehicles Matriculation Boards 68

4 Year Revenues from local taxes and charges (mild lei) Table no. 1 Tax on transport means (mild lei) Management Marketing - Tourism The share of the tax on transport means in the revenues from local taxes and charges (%) , , , , , , , , , , ,0 166,3 4, ,6 207,3 4, ,6 508,2 7, ,6 595,0 9, ,8 649,6 9,54 Source: Statistical Reports of the Minister of The public Finances percents (%) year Figure no The correction and rectification of fiscal stipulations due to the introduction of the notion of tax on transport means The Law 571/2003 of the Fiscal Code has been almost thoroughly modified by the site of the Minister of the Public Finances 69

5 Revista Tinerilor Economişti (The Young Economists Journal) the rectifications of the Law 343/2006. One of these changes is the contents of the article 215 from the normative disposition which clearly stipulates that the phrase charge on transport means used by the Fiscal Code shall be replaced by the phrase tax on transport means. The replacement of the notion of charge with that of tax, triggers a series of modifications of the forms and contents of the stipulations referring to this fiscal load, because the tax specifies the taxation of the property as an obligatory fiscal payment which does not imply an immediate counter service, while the charge represents a taxation of the usage of some goods, and the user benefits from the services of the public institution, that is, in this case, the local authorities 23. In this respect, it is compulsory the modification of the structure of chapter 2 from the annex 1 of the Law of Local Public Finance no. 273/ , as it follows: Act 4 of chapter 2 shall be supplemented with act b 1 entitled tax on transport means. The stipulation from letter a) from the contents of act 7, chapter 2 entitled charges on transport means has to disappear as it is in antithesis with the modification of the Fiscal Code by the art. 215 of the Law 343/2006. Also the notion of tax on transport means, a fiscal load on property, implies the important modification of the art.261 from the Fiscal Code, as it follows: - The above mentioned article binds the assessment of the tax on transport means with the matriculation of the motor car vehicles, implying that this administrative operation represents a suspensive condition of the authority s right to assess the tax as well as the motor car vehicle owner obligation to pay this contribution; - As it is a tax on the right on property over the motor car vehicle, and it is not a toll charged for it being used on the public roads, one considers the fact that the right of local governments to assess this tax is valid beginning with the first day of the following month after the owner gets the property right on the vehicle, and it is no longer valid as soon as the owner loses its right. Consequently, the radiation of these vehicles from the records, does not entitle the owner to require the cessation of the obligation of payment due to the local budgets, as the present law specifies, in spite of the old stipulation referring to the charge on transport means and the maintenance of the matriculation condition within the text of art.261 from the Fiscal Code. Moreover, the government disposition 195/ , with the subsequent modifications and rectifications, republished in the Official Gazette 754, part I from November the 7 th 2008, specifies that the owners of the motor vehicles or the persons assignee to use them, are forced to matriculate or register them, before their being put into circulation. In order to eliminate these inadvertences, it is advisable that the article 261 from the Fiscal Code to be modified and structurally changed as it follows: Any person which acquires the right of property on any transport means shall pay the due tax every year until they lose the quality of proprietor, with the exception of the cases when the law specifies otherwise. In this respect, another modification should be made to the article 94 from the 23 Matei, Gh. - Finante Publice, Reprografia Universitatii din Craiova, The Law 273/2006 of the Local Public Finances in M.Of. nr.618/ O.U.G. 195/2002 republished referring to the circulation on public roads, in M.Of.nr.958/

6 Management Marketing - Tourism government disposition 44/ referring to the norms of practice from the Fiscal Code, as it follows: The phrase transport means stipulated in the article 261 paragraph 1 from the Fiscal Code refers to any mechanic means which circulates on a road, or water, with or without a means of auto propulsion, usually used at persons or goods transport, or at delivering any kind of services or works.. 5. Conclusions The replacement of the notion of charge on transport means with that of tax on transport means triggers a series of corrections and rectifications of all the existing stipulations. Making these necessary changes only in certain areas, and keeping what has already existed in the others, leads to miscellaneous fiscal and legal interpretations and to errors in the application of the law. One considers that these modest suggestions regarding the improvement of fiscal stipulations are made in order to avoid the ambiguity and the equivocal situations when one interprets the text of a law. Moreover, they will contribute to the appropriate sizing of the taxable base and the avoidance of the legal tax evasion, and thus determining those who manage the public resources to have initiatives of improving the citizen s welfare and to be more responsible for the public expenditures. REFERENCES 1. Mehl, L., Le systeme fiscal français, Puf Paris, 1992 Beltrame, P. 2. Matei, Gh. Finante Publice, Reprografia Universitatii din Craiova, Tulai, C. s.a. Probleme actuale ale fiscalitatii in Finante si Controlul Financiar in actualitate, Targu Mures, * * * The Romanian Constitution revised by the Law 429/2003 approved by the referendum from October the 18 th, 19 th 5. * * * The Civil Code modified by the Law 105/ Book II- About goods 6. * * * The Law 571/2003 of the Fiscal Code, in M.Of. nr.927/ * * * The Law 343/2006 referring to the modification and rectification of the Fiscal Code, in M.Of.nr.662/ * * * The Law 273/2006 of the Local Public Finances in M.Of. nr.618/ * * * H.G. 44/2004 referring to the approval of the methodological norms of the Fiscal Code appliance, in M.Of.nr.112/ * * * O.U.G. 195/2002 republished referring to the circulation on public roads, in M.Of.nr.958/ * * * the site of the Minister of the Public Finances 12. * * * The data base of the Head-Office of the Driving Licenses and Auto vehicles Matriculation Boards 26 H.G. 44/2004 referring to the approval of the methodological norms of the Fiscal Code appliance, in M.Of.nr.112/