Prepare the Cod: Preheat the oven to 375°F (190°C). Pat the cod fillets dry with paper towels, then season both sides with salt and pepper. Set aside.

Make the Tomato Sauce: In a medium skillet, heat 2 tablespoons of olive oil over medium heat. Add the chopped onion and cook for 5 minutes, or until softened. Add the minced garlic and sauté for another minute, or until it becomes aromatic.

Add the Tomatoes and Seasoning: Pour in the crushed tomatoes, then add the smoked paprika, dried oregano, and sugar (if using). Season with salt and pepper to taste. Let the sauce simmer for 10 minutes, allowing the flavors to meld and thicken slightly.

Assemble and Bake: Pour the tomato sauce into a baking dish, spreading it evenly. Arrange the cod fillets over the sauce and drizzle with 1 tablespoon of olive oil. Transfer to the preheated oven and bake for 15-20 minutes, or until the fish turns opaque and flakes effortlessly when tested with a fork.

Serve: Garnish the baked cod with chopped fresh parsley and, if desired, sliced black olives. Serve with lemon wedges on the side for a bright finish.