What are the Major Changes in the Tax Evasion Law?
As part of ongoing efforts to combat tax evasion, Romanian legislation is set to undergo significant changes, introducing new offenses and intensifying penalties for existing ones. These adjustments aim to meet the current needs of the economic environment and incorporate technological advancements in the financial sector, thereby redefining Romania's fiscal and criminal frameworks.
 
Who is affected by these changes?
  • Commercial Entities: Businesses need to be vigilant and adapt to the new rules to avoid penalties.
  • Accounting and Financial Departments: These departments must manage according to the new fiscal regulations.
  • Legal and Accounting Professionals: They are responsible for ensuring their clients' tax compliance.
 
How are the new legislative changes implemented?
  • Introduction of New Offenses: Failure to withhold taxes and contributions becomes a crime, with penalties ranging from one to five years in prison or a criminal fine.
  • Increased Penalties for Specific Acts: Crimes related to falsifying eInvoice data or improper use of electronic cash registers will attract penalties between three and ten years in prison.
 
Important Aspects to Note:
  • The changes also include extending the statute of limitations for tax evasion crimes, which will begin from the moment of notification by the tax authority or the court.
  • DIICOT and DNA will have the authority to investigate severe cases of tax evasion, highlighting the seriousness of these offenses.
  • According to a 2023 ANAF performance report, a significant number of tax inspections were conducted, demonstrating strict enforcement of tax laws.
 
The bill, adopted in December 2023 and recently approved by the Constitutional Court of Romania, is set to be signed by the president and published in the Official Gazette to become effective.
 
Costs associated with adapting to the new changes:
  • Adapting to the new requirements may incur additional costs for commercial entities, including the need for specialized consultancy and updating accounting and reporting systems.
 
Concrete Examples:
  • An IT company in Bucharest needs to adjust how it processes and reports financial transactions to comply with the new eInvoice rules, thus avoiding severe penalties.
  • A retail merchant must reconfigure electronic cash registers to ensure all transactions are correctly and fully recorded in accordance with the new legal provisions.
 
The new amendments to the tax evasion law are essential for strengthening measures against this phenomenon in Romania. By understanding and correctly applying these changes, commercial entities can avoid sanctions and contribute to a more transparent and efficient fiscal environment.