Blatant cases of tax evasion for state loans

The tax administration is probing enterprises that have shown a major decline in turnover or submitted amended income tax declarations and received state support from the seventh phase of the cheap state loans program known as “Deposit To Be Returned.”

A Finance Ministry decision stresses that in case of a possible violation of regulations or the submission of declarations with fake or inaccurate data that modify the amount of gross revenues, turnover or field of activity (KAD) or do not accurately reflect the companies’ state of operation, the authorities will implement additional checks. When there are suspicions of foul play, the Independent Authority for Public Revenue may not only not approve the applications, but it will also notify the financial crime prosecutors about the indications that ought to be investigated, to protect the state’s interests.

The auditing authorities recently identified several cases of extensive fraud, with enterprises originally declaring very low annual turnover in order to avoid being taxed for it, and then adjusting it 1,000 times higher to be eligible for a high state loan. The IAPR has now forwarded those cases to the courts.