Romania Expects RON8.8B Revenue From Stricter Fiscal Inspections

04.17.2011 By Bostan Radu

Romania's Government expects to collect 8.8 billion lei (EUR1=RON4.0966) over the next three years from stricter controls on "high fiscal risk taxpayers" plus RON160 million from taxes on high wealth.

Romania's Government expects to collect 8.8 billion lei (EUR1=RON4.0966) over the next three years from stricter controls on "high fiscal risk taxpayers" plus RON160 million from taxes on high wealth.

This income will be augmented by funds collected from inspections on the transfer price in the case of firms trading through affiliates, from companies in electronic trading, economic agents requesting VAT refunds of more than EUR50,000, natural persons required to pay VAT, as well as tougher border controls, says the Government's fiscal-budgetary strategy for 2012-2014, obtained by MEDIAFAX.

Government revenue service ANAF expects inflows to the general consolidated budget of a total RON51.5 billion over the next three years - RON8.6 billion (1.44% of the GDP) in 2012, RON16.3 billion (2.48%) in 2013 and RON26.5 billion (5.7%) in 2014.

According to the document, RON8.8 billion will be collected through stricter investigations of "high fiscal risk taxpayers," spread out as follows:
- in 2012, RON1.36 billion: RON871 million from VAT, RON422 million from profit taxes, RON41 million from social contributions and RON27.5 million from income taxes;
- in 2013, RON2.78 billion: RON1.78 billion from VAT, RON863 million from profit taxes, RON84 million from social contributions and RON55.8 million from income taxes;
- in 2014, RON4.68 billion: RON2.99 billion from VAT, RON1.45 billion from profit taxes, RON140 million from social contributions and RON94.1 million from income taxes.

The Government decided last year that individuals whose real income exceeds their declared income by at least RON50,000 will pay 16% of the difference as tax. Such wealth will be detected by using indirect methods, such as real spending, financial and material flows. The state expects to collect RON160 million in three years this way - RON30 million in 2012, RON50 million in 2013 and RON80 million in 2014.

The strategy says the Government is counting on additional collections in 2012-2014 from:
- check-ups on the transfer prices in the case of taxpayers trading through affiliates: RON340 million;
- more inspections on natural persons who pay VAT: RON750 million;
- companies doing business online: RON230 million;
- controls on the commercial operations of firms requesting VAT refunds of more than EUR50,000: RON759.3 million;
- close monitoring of firms newly registered in fields that present a risk of tax evasion: RON63.9 million;
- tougher border controls and supervision, especially at the northern and eastern borders, and in the Constanta-Agigea Sud port: RON3.69 million.

The Government also estimates it will collect RON4.9 billion from improved "voluntary conformation" to tax payment - from 80.5% in 2011, to 82% in 2012, 83% in 2013 and 84% in 2014.

Through better management of arrears and incentivizing their payment in installments, the state expects additional income of RON17.5 billion, while improvements to the forced execution procedure (electronic seizure of bank accounts and the online sale of goods seized from debtors) will generate income of RON1.3 billion, says the document.

Other sources of additional collections mentioned in the fiscal strategy are:
- full taxation of partially declared activities;
- reauthorizing payment facilities that have lost their validity because of the economic crisis;
- uniting the natural and legal person debt management systems;
- reducing the payment deadline for bills.