Romania’s King Michael loses trial with Tax Agency

27 June 2016

Romania’s King Michael I lost the lawsuit against the tax agency ANAF in which he asked for some EUR 903,000 worth of tax debt to be cancelled.

The Bucharest Court of Appeal rejected his request on Friday. The court’s decision is not final and can be challenged.

King Michael’s tax debt comes from several timber sale transactions he carried out in the past as an individual, reports local Capital.ro. The sales exceeded the maximum threshold up to which no VAT is required, which is EUR 65,000.

The tax agency has looked into the transactions and found that King Michael had some EUR 438,000 worth of VAT to pay to the state budget. However, as he hasn’t paid, the tax agency has increased the total debt amount to over EUR 900,000, more than half of which are penalties.

King Michael, who abdicated in 1947, currently lives in Switzerland. His daughter Princess Margareta now represents the Royal Family’s interests in Romania.

editor@romania-insider.com

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Romania’s King Michael loses trial with Tax Agency

27 June 2016

Romania’s King Michael I lost the lawsuit against the tax agency ANAF in which he asked for some EUR 903,000 worth of tax debt to be cancelled.

The Bucharest Court of Appeal rejected his request on Friday. The court’s decision is not final and can be challenged.

King Michael’s tax debt comes from several timber sale transactions he carried out in the past as an individual, reports local Capital.ro. The sales exceeded the maximum threshold up to which no VAT is required, which is EUR 65,000.

The tax agency has looked into the transactions and found that King Michael had some EUR 438,000 worth of VAT to pay to the state budget. However, as he hasn’t paid, the tax agency has increased the total debt amount to over EUR 900,000, more than half of which are penalties.

King Michael, who abdicated in 1947, currently lives in Switzerland. His daughter Princess Margareta now represents the Royal Family’s interests in Romania.

editor@romania-insider.com

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