The Romanian law governing and sanctioning the acts of tax evasion in Romania is Law no. 241/2005 for preventing and combating tax evasion, establishing measures to prevent and combat tax fraud and crimes that are related to it.
There are many crimes that relate to tax evasion for which Romanian law sets punishments varied depending on the social danger posed.
The following acts, committed in order to escape the tax obligations, constitute tax evasion offenses and are punishable with imprisonment from 2 to 8 years and removal of rights:
a) hiding taxable goods or taxable source;
b) failure, in whole or in part, to highlight, in the accounting or other legal documents, the conducted trade operations or revenues;
c) highlighting in the accounting or other legal documents, charges that are not based on real transactions or highlighting other fictitious operations;
d) alteration, destruction or hiding accounting documents, storage of electrical tax machines or electronic cash registers or other data storage media;
e) execution of double accounting records, using documents or other data storage media;
f) avoidance from carrying out financial, tax or customs checks by undeclaring, fictitious declaring or misreporting regarding main or secondary offices of the checked persons;
g) the substitution, degradation or transfer by the debtor or by third parties of the forfeitures in accordance with the provisions of the Fiscal Procedure Code and the Criminal Procedure Code.
An amendment in 2013 concerning these provisions provides that, if thorugh the means of the regulated facts, occured a damage bigger than 100,000 euros, in the equivalent of the national currency, the minimum penalty provided by law and maximum one shall be increased by 5 years. Moreover, if such facts resulted in damage above 500,000 euros, the minimum penalty provided by law and its maximum are increased by 7 years.
Besides these offenses classified as variants of the crime of tax evasion, there are numerous other offenses in connection therewith.
The fact that the taxpayer does not restore, intentionally or negligently, accounting documents destroyed, in the term entered in the control documents, is punishable by imprisonment from 6 months to 5 years.
Taxpayer is considered any natural or legal person or any other entity without legal personality who owes taxes, contributions and other amounts to the consolidated budget.
The unjustified refusal of a person to submit to the competent bodies legal documents and assets of the estate, in order to prevent financial, tax or customs checkings within 15 days of the summons, shall be punished with imprisonment from 1 year to 6 years. The same punishment is granted for hindering in any form, competent bodies to enter, as provided by law, in the offices, premises or land in order to accomplish financial, tax or customs verifications, as well as intentionally retaining and not consigning the amounts of taxes or withholding, within 30 days of the due date.
An offense punishable by imprisonment from one year to five years and removal of rights is the ownership or movement, without right, of stamps, banderols or printed forms, used in the tax domain, that have a special regime. Also, kowingly printing, using, possesssing or putting into circulation stamps, armbands or printed forms that have a special regime, used in the tax domain, are punished with imprisonment from 2 to 7 years and removal of rights.
The establishment, in bad faith, by the taxpayer, of taxes or contributions, resulting in obtaining without right sums of money by way of reimbursement or refund of the general consolidated budget or compensation due to the general consolidated budget shall be punished with imprisonment from 3 years to 10 years and removal of rights. Moreover, association to commit such acts shall be punished with imprisonment from five years to 15 years and removal of rights. The attempt of these acts are also punishable, as provided by the legal framework on this matter.
Besides imprisonment and denial of certain rights, the legal framework provides that persons convicted for the offenses listed above, presented and regulated by Law no. 241/2005 can not be founders, directors, administrators or legal representatives of the company, and in the case that they have been chosen, it will be proceeded to their disqualification.
Criminal law attorneys within the law firm Darie, Manea & Associates have extensive experience in the field and complex knowledge regarding the offense of tax evasion, being up to date with the legislation in this area of expertise. Please do not hesitate to contact them in the case that you require specialized legal advice or representation in front of the competent authorities!