Romanian authorities have carried out more than a dozen raids on people suspected of hiding income from cryptocurrency operations. The raids took place in late 2022 following an earlier investigation which found that crypto traders failed to report digital assets worth more than $50 million.
Romanian Law Enforcement and Tax Authorities Crack Down on Crypto Taxpayers
Romanian police and tax authorities carried out 17 raids in the fall of last year as part of an investigation against people accused of tax evasion by concealing profits from cryptocurrency transactions, the authorities have revealed. local media.
Addresses were searched in the capital Bucharest as well as in the counties of Dâmbovița, Ilfov and Olt, according to Cristian Roman, partner at law firm Iordăchescu & Asociații, who shared the information with Romania Journal.
The lawyer was referring to data provided by the Romanian police. Law enforcement authorities in the EU country say that between 2019 and 2022, 19 targeted individuals formed or joined an organized criminal group for the purpose of tax evasion.
The taxable income, which they tried to hide, was obtained from transactions with digital currencies, investigators claim. According to preliminary estimates, their activities resulted in losses for the state budget totaling 3 million Romanian lei (nearly $650,000).
Tax Authority Takes Steps to Increase Crypto Taxpayer Compliance
The operation was carried out after the tax fraud unit of the National Agency for Tax Administration (ANAF) launched an investigation last summer into crypto trading products received between 2016 and 2021. via various platforms such as Binance, Kucoin, Maiar, Bitmart and the now bankrupt FTX.
At the time, tax inspectors had identified income of more than 131 million euros obtained by 63 Romanian citizens. They were also able to establish that the individuals had not reported more than €48 million in digital assets on their tax returns.
ANAF explained that its actions were part of a campaign to increase taxation and taxpayer compliance. According to amendments to the Romanian tax code passed by parliament in 2019, income from the transfer of virtual currencies is taxable at a rate of 10% on capital gains exceeding an annual threshold of 600 lei (about $130).
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