Romania’s tax administration ANAF will auction off several assets belonging to the mayor of Bucharest’s District 3, Robert Negoita, to recover a debt of nearly EUR 28 million, reports local Money.ro.

In 2009, ANAF seized his fortune. The conflict between the fiscal authority and Negoita was triggered by the mayor using a law loophole that allowed citizens to build private homes and sell them with lower VAT rate, of 5 percent, instead of 24 percent. Negoita built two residential compounds as an individual.

The initial amount Robert Negoita owed to ANAF was of EUR 9.5 million. However, penalties were added so the total amount now reaches some EUR 28 million, according to Money.ro.

To recover these debts, ANAF will organize a public auction on July 30. It will auction off over 100 apartments with 1, 2, 3 or 4 rooms, as well as underground and above ground parking spaces owned by the mayor.

The real estate properties are priced between EUR 30,000 and EUR 72,000, without VAT. The parking spaces have been evaluated at prices between EUR 1,630 and EUR 6,200, without VAT.

Irina Popescu, irina.popescu@romania-insider.com