TAX EVASION: CROSS-BORDER CRIMES PUNISHED WITH UP TO 15-YEAR IMPRISONMENT

Cross-border fraudulent act consisting in the use, submission of false tax returns or non-disclosure of VAT-related information resulting in a loss of at least 10 Mln euros for the EU budget are crimes incurring up to 15-year imprisonment under the Law No. 125/2023, published in the Official Journal No. 440 of May 22, 2023.

The new piece of legislation, complementing the Law No. 241/2005 on the fight against tax evasion, is a direct consequence of the transposition in the national legislation of the article 3 paragraph (2) letter d) of the EU Directive 2017/1371 of the European Parliament and of the Council of the European Union.

Cross-border fraudulent scheme

Accounts for cross-border fraudulent scheme, under the new law, any act or omission resulting in a diminution of at least 10Mln euros of the EU budget, consisting of:

• the use or presentation of false, incorrect or incomplete VAT-related statements or documents;
• non-disclosure of VAT-related information when such disclosure is mandatory under the law;
• the presentation of correct VAT-related statements for the purposes of fraudulently disguising the non-payment or wrongful creation of rights to VAT refunds.

Sanctions

The acts hereinabove listed account for crimes punishable with imprisonment ranging from 7 to 15 years and a ban on certain entitlements.

The Law No. 125/2023 entered into force on May 25, 2023.