Tax evasion is booming, as it is spread in almost every sector, Felicia Pop, general commissioner of the Fraud Squad said in an interview. She said that the phenomenon of tax evasion has increased especially on the segment of intracommunity trades, as tax evaders use several methods to avoid the law. The weak points which tax evasion is conducted through are the border crossing points, which intracommunity traffic is conducted through, as well as the port of Constanţa, and the Bucharest-Ilfov region, where the degree of tax evasion is very high, and the authorities are "far from getting a handle on this phenomenon".
Reporter: Tax evasion is one of the most discussed topics in Romania, and its eradication is a constant priority for the government programs. What stage is this phenomenon in?
Felicia Pop: Tax evasion is present in almost all areas of activity. Tax evasion has significantly increased on intracommunity trades. It is an area which many have tried to use and they have succeeded to a good degree. The intracommunity trades and the trading with excisable products are currently the most affected by tax evasion.
Reporter: What is the most commonly used method to avoid the law, in these areas?
Felicia Pop: Tax evasion takes various forms. There is a simulation of intracommunity trades, in order to avoid the payment of VAT, and then, the merchandise is recorded on the books of shell companies that disappear after the first trades (by the time we get to investigate them, they disappear), in order to avoid the payment of taxes. Usually, very low prices are used at the time of the purchase, and then, along the circuit, prices are hiked tens of times, to allow the deduction of VAT...
The imagination of tax evaders is limitless: there are many circuits for the merchandise; there are situations where on paper, a merchandise goes throug
