In Romania, people suspected of tax evasion are currently being searched by the authorities. The series of raids follows an earlier investigation into cryptocurrency market participants who allegedly failed to declare huge digital assets.
The tax administration has decided to put an end to tax evasion
3 million Romanian lei, or about $650,000. Is in Romania, the estimated amount of losses caused by the fraud taxation related to cryptocurrencies. To counter this, the Romanian authorities have just carried out 17 raids on the homes of people accused of fraud. These people have been hiding profits from crypto transactions in particular. The searches took place in the capital Bucharest, as well as in Dâmbovița, Ilfov and Olt counties.
You should know that these searches are part of an investigation. The National Agency for Tax Administration (ANAF) started the investigation last summer. This focused on cryptocurrency trading revenues received between 2016 and 2021 on Binance, Kucoin, Maiar, Bitmart, and FTX. It led to the series of searches led by police and tax officials.
At the time, tax inspectors identified income of more than 131 million euros obtained by 63 Romanian citizens. They also discovered that $50 million in crypto-assets had not been disclosed by these people.
A clear picture regarding the taxation of cryptocurrencies
According to the amendments to the Romanian Tax Code adopted in 2019, the income from the transfer of cryptocurrencies is taxable at a rate of 10% on capital gains above an annual threshold of $130. The tax code also specifies that the sale of digital currencies is subject to VAT, at the rate of 19%.
According to ANAF, these actions aim to increase taxation. They will also ensure that taxpayers comply with the rules.
These raids serve as a reminder of the need for people to report and pay taxes on their cryptocurrency income. They also testify to the authorities’ desire to clean up the cryptocurrency sector.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its many uses and to transmit information related to this ecosystem with my pen.