Romanian authorities have conducted more than a dozen raids against people suspected of hiding revenue from cryptocurrency operations. The searches took place in late 2022 following an earlier investigation which determined that cryptocurrency traders had not reported digital assets worth more than $50 million.
Law enforcement and tax authorities in Romania persecute crypto tax payers
Police and tax officials in Romania carried out 17 raids in the fall of last year as part of an investigation against people accused of tax evasion by hiding profits from cryptocurrency transactions, local media have revealed.
The addresses were searched in the capital Bucharest and Dâmbovița, Ilfov and Olt counties, according to Cristian Roman, a partner at the law firm Iordăchescu & Asociații, who shared the information with Romania Journal.
The lawyer was referring to the data provided by the Romanian police. Between 2019 and 2022, 19 targeted individuals formed or joined an organized criminal group for the purpose of tax evasion, law enforcement authorities in the EU country say.
The taxable income, which they tried to hide, was obtained from transactions with digital currencies, investigators say. According to preliminary estimates, their activities resulted in losses to the state budget totaling 3 million Romanian lei (nearly $650,000).
Tax Authority Moves To Increase Compliance Among Crypto Taxpayers
The operation was carried out after the Anti-Tax Fraud Unit of the National Agency for Tax Administration (ANAF) launched an investigation last summer into cryptocurrency trading proceeds received between 2016 and 2021 through various platforms such as Binance, Kucoin, Maiar, Bitmart and FTX now bankrupt.
At the time, tax inspectors identified revenues of more than 131 million euros obtained by 63 Romanian citizens. They were also able to establish that individuals had failed to declare over €48 million worth of digital assets on their tax returns.
ANAF explained its actions were part of a push to increase taxation and compliance among taxpayers. According to amendments to the Romanian tax code approved 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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