Romanian law enforcement have conducted several raids in connection with an investigation into suspected tax evasion via cryptocurrency activity. The probe was initiated following a finding that traders had not reported digital assets worth more that $50 million on their tax returns.
Tax Authorities in Romania Go After Crypto-payers
Police and tax officials in Romania have revealed that 17 searches were carried out in late 2022 as part of an inquiry into individuals accused of running away from taxation by concealing profits from crypto transactions.
Addresses were targeted in the capital Bucharest, as well as in Dâmbovița, Ilfov and Olt, according to Cristian Roman, a partner in the law firm Iordăchescu & Asociații, who shared the news with the Romanian Journal.
The lawyer was citing information from Romanian police. Law enforcement authorities in the European Union country allege that 19 individuals formed or joined a criminal group for the purpose of tax evasion between 2019-2022.
The investigators state that the income they sought to hide was obtained through cryptocurrency transactions. According to their calculations, their activities resulted, according to preliminary estimates, in losses of 3,000,000 Romanian lei (around $650,000) to the state budget.
Tax Crypto taxpayers being more compliant, authorities take action
The operation was concluded after the tax fraud unit at the National Tax Administration Agency (ANAF) launched an investigation last summer into cryptocurrency trading income between 2016 and 2021, via various platforms such as Binance, Kucoin, Maiar, Bitmart, and The FTX (now defunct).
Tax inspectors found income worth more than 131 million euros earned by 63 Romanian citizens during this period. They also established that people had not reported more than €48 million in digital assets on their tax returns.
ANAF announced that it is part of an effort to increase taxation and compliance among taxpayers. According to changes to the Romanian Tax Code approved by the parliament in 2019, income from virtual currency transfers is subject to a 10% tax on capital gains exceeding 600 lei per year (around $130).
Think about how the Romanian Tax authorities will continue to clamp down on cryptocurrency traders and taxpayers. Leave a comment in the section below.
Images credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is intended for informational purposes only. It is not an offer to buy, sell or solicited offer. It does
