Romania's tax agency wants more power to recover insolvent firms’ debts

Insolvent firms will no longer automatically escape the debt recovery procedure initiated by Romania’s Tax Agency (ANAF) for public debts if a court decision on criminal matters has been handed down, according to a proposal ANAF sent to the Finance Ministry. The proposal could lead to a change in the Fiscal Procedure Code. The current law provides that all enforcement measures, including those initiated by ANAF, are suspended once the insolvency proceedings start. The Finance Ministry said that it has received ANAF’s proposals and that it will analyze them, according to Profit.ro. Many companies in Romania have taken advantage of the current law. They file for insolvency to avoid paying their debts to the state. Some shareholders do so and then open new firms. Number of insolvent companies, up in Romania after three and a half years Coface: Financial losses caused by insolvency reach historical level in Romania editor@romania-insider.com