Romanian FinMin speaks of transfer pricing on political note

Romania’s finance minister Eugen Teodorovici reiterated the allegations related to the transfer pricing policies pursued by foreign-owned companies in Romania, but this time he placed them in a political context.

"We mustn't be afraid to speak. On the one hand, at European level, big companies, through their governments and their finance ministers, say we have to follow the [competition] rules. However, in the countries where they operate branches, they pursue some incorrect practices," Teodorovici stated, according to Ziarul Financiar.

The tax collection agency ANAF will continue investigating the large and medium-sized companies, particularly the way they transfer their profits abroad, according to the finance minister.

Teodorovici explained that by purchasing from abroad expensive goods that could be purchased cheaper from Romania, those companies are responsible in the host country not only for avoiding to pay taxes, but they also hurt local producers. Moreover, Teodorovici claims this is a deliberate policy.

The transfer of profits, including by transfer prices will be analysed because they can hide "a lot of incorrect actions" against Romania, he concluded.

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