Romania’s tax collection agency ANAF will have to screen companies indicated by the state forecasting body CNP based on a risk analysis indicating potential tax evasion, under an agreement between the two public institutions unveiled by the local media on Tuesday, January 29.

This comes after ANAF had previously announced that it would particularly focus on the activity of large companies this year, part of rhetoric concentrated against the “large multinational corporations” that avoid taxation by transfer pricing, among others. The opposition parties accused the ruling coalition of preparing to blackmail large companies.

The Government last year empowered the state forecasting body CNP with duties related to strategic planning and the agreement with ANAF further expands the scope of its activity. CNP will base its risk analyses on the financial data of the companies supplied by ANAF and sector-specific indicators. The agreement between ANAF and CNP is reportedly aimed at addressing the grey economy.

According to the statistics office INS, the GDP generated by the unreported economy (that does not generate revenues to the state budget, but is covered by GDP statistics) increased to 22.8% of the total GDP in 2016, from 20.5% in 2015, and remained above 21% in 2017-2018.

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