Romania's futile fight against tax fraud

The Romanian tax authority Anaf announced last week that starting next year undeclared assets will be taxed at a rate of 16 percent. The daily Evenimentul Zilei writes that in view of the social acceptance of tax evasion it will be difficult to get the problem under control with measures like this: "In countries like Romania tax evasion goes hand in hand with organised crime, the smuggling of taxable goods (tobacco, alcohol, petrol) and money laundering. It is widespread and deeply rooted in many areas, for example agriculture, the food industry, construction and the service sector. ... Turning the thumbscrews - in the event that Anaf and the police can do this at all - could have unexpected consequences. One example: last week at Pieptănari market [in Bucharest] several inspectors took to their heels after catching someone with a bag full of Ukranian cigarettes without a tax strip."

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