Romanian tax authorities scrutinize roughly 2,800 businesses for suspected tax evasion tactics involving revenue relocation
The National Agency for Fiscal Administration (ANAF) in Romania has launched a comprehensive investigation targeting 2,768 local companies, suspected of potential profit shifting. The investigation, aimed at verifying the financial activities of these companies, is part of ANAF's ongoing efforts to ensure tax compliance and curb base erosion and profit shifting (BEPS) risks.
The verification process, as reported by ANAF, will involve a detailed review of the companies' financial activities to identify any instances where profits may have been artificially shifted abroad or to related parties, thus reducing their taxable income in Romania.
Key aspects of the investigation include analyzing intra-group transactions to identify transfer pricing practices that may not adhere to the arm's length principle, examining financial statements and transfer pricing documentation, cross-checking declared profits and tax returns against economic activities and contractual agreements, and requesting supporting documentation and explanations from companies.
If inconsistencies or risks of profit shifting are detected, ANAF may conduct audits or on-site inspections to further scrutinize the companies' financial activities.
The timing of this investigation seems to be connected to broader efforts to improve tax collection and address fiscal management concerns, particularly in light of budget deficit and fiscal risks reported in 2024 and 2025.
It's important to note that the procedural steps for this specific ANAF verification campaign are not explicitly detailed in the available information, but such actions typically follow national tax laws and may be supported by EU directives combating profit shifting and tax avoidance.
A press release issued by ANAF confirms the initiation of the investigation, but specific details about the formal notification procedure or the legal framework supporting this campaign were not found in the search results.
This investigation underscores ANAF's commitment to maintaining a fair and transparent tax environment in Romania, ensuring that companies adhere to tax reporting and collection regulations, and contributing to the country's overall fiscal health.
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The investigation, encompassing intra-group transactions and financial records, aims to uncover transfer pricing practices that might be deviating from the arm's length principle within the industry. This scrutiny is anticipated to aim at fulfiling financial obligations in the business sphere and safeguarding the nation's revenue stream from a finance perspective.
