Romanian Fin Guard To Be Able To Confiscate Assets, Participate In Searches - Draft Decree

The Financial Guard may request to take part, alongside investigators, in searches in public or private locations, such as homes, households, yards, if there are clues that the respective locations might be used to hide documents, merchandise or activities related to tax evasion.

Financial Guard employees will be entitled to confiscate assets whose source, fabrication, storage, transport or sale is illegal. The Financial Guard may also confiscate gains obtained from illegal activities and accounting documents and other documents that can be used as evidence of tax evasion.

"Activities unfolded by Financial Guard inspectors are often rendered difficult as traders and people involved in tax evasion activities refuse to state their ID and inspectors cannot legally confiscate suspicious assets,” states the draft decree’s substantiation note.

Romania’s “underground” economy increased to over 21% of the gross domestic product in 2004-2008 from 14.5% of GDP. Taxation of this segment would have generated state budget revenues of 58.116 billion lei (EUR1=RON4.1605), or 11.3% of GDP, according to a report of the Ministry of Finance.

 

 

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