Judges in Romania have conducted more than a dozen raids against people suspected of hiding income from cryptocurrency in forces. The searches took place in late 2022 following an earlier investigation which established that crypto merchants had failed to report digital assets exceeding $50 million in value.
Law Enforcement and Tax Authorities in Romania Go After Crypto Taxpayers
Observe and tax officials in Romania have carried out 17 raids in the fall of last year as part of an investigation against persons accused of get out ofing taxation by concealing profits from transactions with cryptocurrencies, local media revealed.
Addresses were searched in the prime Bucharest as well as the counties of Dâmbovița, Ilfov and Olt, according to Cristian Roman, partner at the Iordăchescu & Asociații law firm, who shared the news with Romania Journal.
The lawyer was referring to data provided by the Romanian police. Law enforcement authorities in the EU country depose that, between 2019 and 2022, 19 targeted individuals formed or joined an organized crime group for the purpose of tax trickery.
The taxable income, which they tried to hide, was obtained from transactions with digital currencies, investigators claim. According to foreword estimates, their activities have resulted in losses for the state budget totalling 3 million Romanian lei (almost $650,000).
Tax Jurisdiction Moves to Increase Compliance Among Crypto Taxpayers
The operation was conducted after the tax fraud combatting unit of the Citizen Agency for Fiscal Administration (ANAF) launched a probe last summer into proceeds from crypto merchandising received between 2016 and 2021 through various platforms such as Binance, Kucoin, Maiar, Bitmart, and the now-bankrupt FTX.
At the straightaway, tax inspectors identified revenues of over €131 million obtained by 63 Romanian citizens. They were also competent to establish that the persons had failed to report over €48 million worth of digital assets on their tax carry backs.
ANAF explained that its actions were part of a push to increase taxation and compliance among taxpayers. Concerting to amendments to the Romanian Tax Code passed by the parliament in 2019, income resulting from the transfer of virtual currencies is taxable at a 10% at all events on capital gains exceeding an annual threshold of 600 lei (approx. $130).
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