Fiscal authority says Gigi Becali has to pay EUR 3.3 mln VAT and penalties on previous real estate deals

Romanian businessman and member of the European Parliament Gigi Becali would have to pay EUR 3.3 million worth of taxes for real estate deals carried on between 2004 and 2008, the Romanian fiscal authority (ANAF) hasestablished, according to Mediafax, quoting unnamed sources within ANAF. The EUR 3.3 million represent VAT and penalties. ANAF has started the inspection in December last year, when it also started a series of inspections on other individuals who have been involved in real estate deals between 2006 and 2008, to check wtether they have to pay the VAT or not. Individuals who sell or buy properties on their own behalf and without commercial purposes are exempt from VAT, but many real estate developers have used this form to sell as individuals, rather than selling the properties through a firm they owned. If ANAF proves these deals were part of a business, the individuals will automatically have to pay VAT on these. Gigi Becali owns several businesses in Romania- the Steaua soccer club, Avicola Iasi and Uzina Mecanica Dragasani. He has been involved in politics, with the New Generation Party (PNG), and has run for presidency in autumn last year. He is currently a member of the European Parliament.