Tax-insurance issues, problems and liabilities in ET inheritance

 

After the decease of the deceased (Sole Trader), the heirs have the obligation to submit a declaration of the received inheritance within six months of death, according to Art. 32 of the Local Taxes and Fees Act (LTCT). This declaration is provided for in the law upon the discovery of each inheritance.

 

Prior to entering ET in the Commercial Register, the heir shall notify the NRA in writing of his intention to continue the activity under Art. 77 of the TIPC. In response to this notification, the NRA issues a certificate, which is attached to the documents for the Registry Agency. However, the time limit for issuing this certificate is 60 days, which greatly slows down the entire registration procedure of the transfer in the Commercial Register. Often during this period, the company continues to operate at full speed, despite the lack of registration, and a number of tax and social security problems arise during this period, especially if the company is not so small and employees are employed.

 

On some of the questions NRA answers with Explanation Ex. No 96-00-208 of 09.04.2012. For example, if the company has employees and one of the heirs has taken the enterprise by having objected to it with certain actions (for example by crediting an agreement with the other heirs before a notary or silently continued to take care of the company's affairs), there is no obstacle to the insurance contributions for the staff to continue to enter the taxpayer's account of the deceased person until the registration of the transfer to the Trade Register and the opening of a new tax- This is considered logical because the rights and obligations of the deceased are already accepted by the heir with the above mentioned actions and one of his obligations is to pay the social security contributions and taxes to the employees of the company Theoretically the successor himself , although not yet listed in the Commercial Register, should also be started as a self-insured person.

 

As for the invoices issued in the above-mentioned period (from ET's death to the entry of the enterprise's successor in the Commercial Register), it is correct that they have the heir's identification data as he has already accepted the business. But if the invoices are nevertheless issued on behalf of the deceased (which happens most often), these documents should also be recognized by the tax authorities as they reflect income that is at the expense of the heir.

 

The situation is particularly complicated if the deceased ET is registered under VAT. According to the law, his deregistration occurs with the date of death (Article 107 (2) in conjunction with Article 110 (2), first sentence, of the VAT Act). However, since the Sole Trader's enterprise is inherited, the provision of Art. 10, para. 3 of the VAT Act (Letter № 20-19-62 of 08.04.2009). By virtue of this rule, when a person legally liable under the law receives the goods or services of inheritance, he is the legal successor of all rights and obligations under this Act in connection therewith, including the right to deduct the tax credit and the obligations to perform adjustment of the tax credit used. This is valid also in the period from the death of the deceased to the entry in the Commercial Register.

 

The heir inherits not only the rights but also the obligations of the deceased. In this regard, the undertaking undertaking the ET shall inherit all public liabilities incurred for the legator in its capacity of ET. The heir has no obligation to file declarations on behalf of his / her legend for the time before his / her death (if he / she has failed to submit them) but is responsible for previously incurred liquidity and due liabilities of ET. This may be VAT, VAT, etc., which the deceased has declared, but has not paid in due time. This column also includes tax and social security contributions for ET employees that the deceased did not pay in time for his life.

 

The health and social security obligations of the deceased trader himself as a self-insured person should not be paid by the heir, as these are personal insurance contributions. According to the Decision No. 10097 of 03.12.2004, Case No 4136/2004 of the Supreme Administrative Court, I, these contributions are made in view of a future uncertain event and the rights which the insured person derives from the insurance terminate with his death. Therefore, these obligations are not inherited by the heir