Romanian prosecutors hold 33 in large scale tax evasion case

Romanian prosecutors and anti-fraud law enforcers held 33 people last night in a tax evasion and money laundering case. The mayor of the Bradu village in Arges county is one of the 33 arrested, according to Mediafax. Prosecutors investigate about 200 firms for setting up a crime ring that damaged the state budget by EUR 30 million in unpaid taxes. Some of these companies are well-known companies in IT and constructions, such as IT and security services provider UTI, construction groups Erbasu and Strabag and IT firms Romsys and Total Network Solutions. All these companies received significant contracts from the state. Total Network Solutions, for example, has been providing software to the National Anticorruption Directorate (DNA) and the National Fiscal Administration (ANAF), according to Digi 24 news station. These companies allegedly used ghost-firms to close fictitious procurement contracts for goods and services. They used these false expenses to pay fewer taxes to the state (income taxes and VAT). editor@romania-insider.com