Tax consultants: Plan to fight evasion actually hurts honest taxpayers

Autor: Ciprian Botea 22.06.2010

The steps to fight tax evasion promoted by the Government will not reduce the size of the informal economy, but will affect those economic operators that pay their taxes regularly, will generate arrearage in the economy and lead to increased reluctance on the part of foreign investors when it comes to investing their resources in Romania, say most tax consultants working with major companies in the field.
The main problem is that the authorities are focusing only on how to collect more money to the state budget, instead of pursuing creation of a viable taxation system, consultants say.
The changes made by the Emergency Ordinance recently endorsed by the Government will affect first of all the companies conducting export-import operations to and from the European Union, which should register in a new database - "Intra-community Operators Registry" within ten days, as their VAT numbers will no longer be valid for such operations starting July 1.