Increased penalties for tax evasion

Increased penalties for tax evasion

View this page in: Romanian
28 March 2013

Law no. 50/2013 amending Law no. 241/2013 on preventing and fighting tax evasion (hereinafter “the Law”) came into effect on 22 March 2013.

The Law increases the penalty for crimes related to tax evasion, as follows:

- imprisonment for between six months to five years for not restoring, on purpose or through negligence, accounting records within the deadline required by a tax inspection report;

- imprisonment for between one year to six years for unjustified refusal to provide documents or patrimony goods as requested by the tax authorities within 15 days of receiving an official notification, with the aim of obstructing a financial, fiscal or customs inspection;

- imprisonment for between one year to six years for any form of obstruction of the tax authorities so as to prevent them from entering any office, premises or land to conduct a financial, fiscal or customs inspection;

- imprisonment for between one year to six years for deliberately withholding and failing to pay outstanding withholding tax liabilities for a period exceeding the payment deadline by a maximum of 30 day.

The Law also provides for penalty increases for activities aimed at avoiding certain tax obligations punishable by imprisonment for between two to eight years, such as:
- concealment of taxable property or taxable sources;

- failure to highlight commercial operations performed or income obtained in the accounting records or other legal documents;

- highlighting fictitious operations in the accounting records or other legal documents;

- alteration, destruction or concealment of accounting records.

 

Specifically, for offences causing monetary damage exceeding the equivalent in RON of EUR 100,000, the Law increases the penalty of imprisonment by five years (from two years under previous provisions). For offences causing monetary damage exceeding the equivalent in RON of EUR 500,000, the penalty of imprisonment is increased by seven years (from three years under previous provisions).


[Source: Official Gazette of Romania no. 146 /19 March 2013]

For more information, please contact Peter de Ruiter, Mihaela Mitroi, Ionut Simion and Daniel Anghel.

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