NGO criticises law that allows avoiding criminal penalty for tax evasion

12 April 2021

The Association "Movement for the Defense of the Statute of Prosecutors" (AMASP) criticized in harsh terms the law that prevents jail decisions for tax evasion if the defendant pays the damage.

The organization argues that Romania has introduced "one of the mildest sanctioning regimes in the European Union" that encourages tax evasion, G4media.ro reported. 

The new rules, which allow tax dodgers to escape punishment regardless of the amount of damage if the defendant pays a 20% fine above the damage to the state budget, are probably inspired "by the system of buying religious indulgences," AMASP claims.

"We call on the Parliament and the Government to review these changes and repeal the provisions that are in fact a form of disguised decriminalization," the AMASP statement said.

In 2020, Romania had the widest VAT gap in the European Union (about 34% of the VAT supposed to be collected), the European average being 9.2%.

On March 31, president Klaus Iohannis promulgated the law that allows tax evaders to dodge criminal conviction if they pay the damage to the state plus a fine.

andrei@romania-insider.com

(Photo source: Shutterstock)

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NGO criticises law that allows avoiding criminal penalty for tax evasion

12 April 2021

The Association "Movement for the Defense of the Statute of Prosecutors" (AMASP) criticized in harsh terms the law that prevents jail decisions for tax evasion if the defendant pays the damage.

The organization argues that Romania has introduced "one of the mildest sanctioning regimes in the European Union" that encourages tax evasion, G4media.ro reported. 

The new rules, which allow tax dodgers to escape punishment regardless of the amount of damage if the defendant pays a 20% fine above the damage to the state budget, are probably inspired "by the system of buying religious indulgences," AMASP claims.

"We call on the Parliament and the Government to review these changes and repeal the provisions that are in fact a form of disguised decriminalization," the AMASP statement said.

In 2020, Romania had the widest VAT gap in the European Union (about 34% of the VAT supposed to be collected), the European average being 9.2%.

On March 31, president Klaus Iohannis promulgated the law that allows tax evaders to dodge criminal conviction if they pay the damage to the state plus a fine.

andrei@romania-insider.com

(Photo source: Shutterstock)

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