Romania’s Government will start a series of fiscal inspections of companies in the second half of this year, through the National Agency for Fiscal Administration ANAF and Labor Inspection, under a pilot project, reports local news agency Mediafax.

Through this project, the Government aims to identify illegal work and cases of tax evasion.

The commitment to start such inspections was made by the Romanian Government during recent negotiations with the International Monetary Fund IMF, held in February, and included in the intent letter.

The document signed in March and quoted by Mediafax reveals that this pilot project will be made public by late-May, through a press release.

The document also shows that a high-level working group was created in October 2013 for the authorities to “better understand” the weak revenue collection in last year’s third and fourth quarters, and it was found that they reflect, only to a limited extent, the ongoing process of reorganization at ANAF.

Thus, the Government is committed to allocate extra resources for a “more strict monitoring” of the number of newly registered companies, of the reporting activity - especially in the case of large taxpayers, the stock and flow of arrears, and the number of performed inspections.

“Voluntary compliance, meaning the report between the declarations submitted on time and the expected number of declarations to be submitted, is improving."

"We have improved, overall, the quality of inspections carried out in the case of individuals’ income tax. We’ll continue to improve our techniques of control by using indirect methods of demonstrating income, by expanding the definition of income with unknown source and by clarifying the taxable character of dividend payments,” shows the document.

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