EY consultant: Romania's tax agency collects 75% of reported dues

For every RON 100 reported as taxes, the tax collection agency ANAF gathers in between RON 75 to RON 78, said Alex Milcev, a partner and leader of the Fiscal and Legal Assistance department of EY. “Let’s say that a revenue tax, VAT, or a salaries tax of RON 100 is reported at ANAF. They collect RON 75-78. I don’t think they ever exceeded RON 80. Over 20% of the reported money is not collected, leaving aside the fiscal evasion of 20% to 50%. We are talking about reported money,” he said, reports local Economica.net. Milcev gave the example of Bulgaria, which has increased its collection rate after modernizing their tax collection agency. “The Scandinavian countries have a 97-99% collection rate, we are at 70+, they, at 100 minus a little,” Milcev said. The EY partner also said that the Romanian fiscal system is not “flawed.” “I don’t believe we have a flawed fiscal system. It really isn’t complicated, despite the discussions about hundreds of taxes suffocating taxpayers and so on. You haven’t seen what goes on in other countries. We really do not have such a sophisticated system, there are not so many exceptions, and it is relatively stable, at least in the past 10 years, since we joined the EU. It is much more stable than before. The profit tax used to change two times a year. I don’t think the system needs changing or new rules. We need to enforce the existing rules. This is how it is all over the world,” he said. Romania’s tax agency surpasses RON 100 bln collection threshold in H1 2017 editor@romania-insider.com