In recent days, Romania has adopted an important decision that affects the field of tax legislation. The country's Constitutional Court confirmed a bill that would abolish criminal penalties for tax evasion for amounts under €1 million. The move ends a long debate and opens the door for the reform to come into force.
According to the new law, tax evaders will no longer be subject to criminal liability if they pay the relevant amounts of taxes with interest and penalties within 30 days of receiving an order from the tax authorities. The law, passed in December 2023, has received support from the ruling coalition, expressing its desire for a more efficient tax collection system rather than punishing citizens.
Despite the positives of the new law, however, there are concerns. Laura Kövesi, head of the European Prosecutor's Office, expressed concern about its implications. She said the move could have a negative impact on international cooperation and contradict Romania's commitments to the European Union. Nevertheless, the court found the law constitutional, arguing that the main goal should be to identify and confiscate illicit assets, not to seek criminalization.
At the same time, the court ruled that the law was constitutional, arguing that the main goal should be to identify and confiscate illegal assets, not to seek criminalization.