Romanian Police Raids Linked to Cryptocurrency Tax Evasion Investigation

Romanian Authorities have conducted more than a dozen searches in connection to individuals suspected of hiding profits from cryptocurrency transactions to avoid taxation. After investigating those who did not declare digital assets in excess of $50 million, the law enforcement officers conducted the raids in 2022.

Tax Authorities in Romania Aim for Cryptocurrency Taxpayers Compliance

Police and Tax officials in Romania revealed that 17 raids were conducted during the fall of 2017 as part of an investigation into those accused of failing to report income from cryptocurrencies. The searches were conducted in the capital city Bucharest, as well as in the counties of Dâmbovița, Ilfov, and Olt, according to Cristian Roman, a partner at the Iordăchescu & Asociații law firm, who shared the information with Romania Journal.

The law enforcement officials allege that 19 people formed or joined an organised criminal group in order to evade taxes, between 2019-2022. The tax base they attempted to conceal is said to have been obtained through transactions using digital currencies. According to preliminary estimates, their activities resulted in losses totaling 3,000,000 Romanian lei (almost $650,000) to the state budget.

Taxpayers Increasing Compliance as Authorities Take Action

The operation is a result of the investigation launched last summer by the tax fraud unit at the National Tax Administration Agency, ANAF, into cryptocurrency trading income between 2016 and 2021 on various platforms, such as Binance, Kucoin, Maiar, and Bitmart. The FTX is now bankrupt.

In that period, tax inspectors identified income exceeding 131 million euros from 63 Romanian citizens. They also established that people had failed to declare more than €48 million in digital assets on their tax returns.

ANAF stated that it was part of a push for increased taxation and compliance among taxpayers, in accordance with the amendments to the Romanian Tax Code approved by the Parliament in 2019. The law now requires income from virtual currency transfers to be subject to 10% tax on capital gains exceeding 600 lei per year (approximately $130).

Do you think the Romanian Tax Authorities will be more stringent with cryptocurrency traders and taxpayers? Let us know in the comments section below.