MPs endorse measures to combat tax evasion
Romania is trying to tighten its anti-evasion legislation
Bogdan Matei, 20.12.2023, 14:00
Romanian journalists have been writing for years that, in the private sector, tax evasion is quasi-generalized. According to experts, its extent is difficult to quantify, but Romania is among the first in Europe. Car mechanics or plumbers who work illegally. Minibus drivers who collect money from passengers but do not issue tickets. IT workers paid thousands of euros per month, but with a contract of employment on the minimum wage in the economy. Construction companies that collect from beneficiaries triple amounts compared to those registered in documents.
For many years also, all kinds of new characters appear at the head of the National Fiscal Administration Authority (ANAF), and promise, without exception, higher collections to the state budget, but fail to reach their assumed targets and are replaced by others, which continue the spiral of unfulfilled promises. However, the insufficient budget collections are the favorite excuse of all governments, right-wing or left-wing, single-color or coalition, for not making bigger investments in infrastructure and for not increasing pensions or salaries. On Tuesday, the Bucharest Chamber of Deputies adopted a set of additional measures to combat tax evasion. There were 182 votes for, 80 against and two abstentions for this draft law, initiated by the leaders of the government coalition, the Social Democrat Marcel Ciolacu and the Liberal Nicolae Ciucă, i.e. the current prime minister and his predecessor. Among other things, non-withholding of taxes and contributions, accounting documents for fictitious expenses, the execution of double accounting records or the use of cash registers that are not connected to the National Control Information System will be considered crimes.
Depending on the seriousness of the offense, the punishments provided by the new normative act range between one and ten years in prison and are tougher for tax-evaders whove done it before. There is, however, the possibility of not getting punished if, for example, the damage does not exceed one million euros and its value increased by 15%, plus interest and penalties, is actually paid in full. In this situation, the competent bodies will not notify the criminal investigation bodies.
From the opposition, the Save Romania Union (USR) deputy Stelian Ion, former Minister of Justice, claims that, through such provisions, the PSD-PNL coalition Government is only decriminalizing tax evasion. The accusations were rejected by the vice-leader of the National Liberal Party (PNL) group in the Chamber, Florin Roman, who accuses „a lot of nervousness among USR colleagues, that the fight against tax evasion is starting”. If it is not challenged at the Constitutional Court, the bill adopted by the Chamber of Deputies, as the decision-making body, will go to President Klaus Iohannis for promulgation. (MI)
