BCR could enter international dispute with Romania's tax agency

Largest Romanian lender BCR, owned by the Austrian group Erste, will open an international dispute procedure if Romania’s Tax Agency (ANAF) refuses to cancel an additional tax of over RON 100 million (EUR 21.8 million), reports local Profit.ro. Local tax authorities believe that the financing received by BCR from the parent group Erste was too expensive, which has diminished the bank’s taxable profit in Romania. On the other side, Erste says that the European Central Bank (ECB) notified it that the loans granted to its Romanian subsidiary were too cheap. BCR contracted subordinated loans in lei amounting to RON 1.33 billion (EUR 290 million) in 2008, RON 120 million (EUR 26 million) in 2009 and RON 100 million (EUR 21.8 million) in 2012. Romania’s Government has sent the Tax Agency to the largest banks in Romania to collect more taxes. Following a control in June this year, ANAF decided that BCR should pay over RON 100 million (EUR 21.8 million) worth of extra taxes or the 2012-2015 period. BCR has challenged the decision. editor@romania-insider.com