In these last days of 2023, the Romanian Parliament quickly adopted a new bill amending the Law on Tax Evasion (No. PL-x No. 805/2023). From the very beginning, we must emphasize that the goals for which this project was promoted – preventing and combating the phenomenon of tax evasion (so widespread in our country and causing significant damage to society) – are undoubtedly valid and extremely relevant, therefore we support them categorically and without any reservations.
The atmosphere has heated up – not only at the political level, but also in the media – around the eternal problem of Romanian society: practical solutions for compensation for damages related to tax evasion crimes, i.e. incentives for those who are the object of criminal proceedings , to pay the amounts owed and possible additional amounts in exchange for mitigation of criminal treatment in case of losses up to 1 million lei. Without wishing in any way to diminish the importance of the discussion on this subject, we cannot but note that there are many other matters of great importance which, unfortunately, have not received any attention, so we think it necessary and useful to present them briefly below from from a purely technical point of view, and without focusing our attention on questions of expediency, which, undoubtedly, the political factor is called upon to solve.
- In a democratic society, failure to withhold tax at source cannot be recognized as a criminal offense but, in fact, concerns only a tax dispute
The first aspect, which is the subject of our analysis, concerns the amendment related to the criminalization of the act of not withholding taxes/contributions listed in the appendix to the law, without any clarification in the explanation of the reasons why the legislator chose to return to the discussion and adopt the criminalization of this act “in one night.”
Read the rest of the article on the PwC Romania blog
Article by Dan Dascălu, Partner at D&B David and Baias Mihail Boian, Partner at D&B David and Baias.
Article supported by PwC Romania
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.