Authorities say they are considering a plan to cut public spending without affecting wages and investment
Articol de Iulian Olescu, 23 Aprilie 2023, 22:51
The authorities are considering a plan to cut spending in the public sector without cutting wages and without affecting investment.
The measures would be approved next week by the government, through an emergency ordinance, after being validated in a coalition meeting.
Another problem that the government is trying to solve is the collection of money to the budget, especially since, starting this year, Romania adopts the European directive in local legislation that obliges multinational companies in the country with a turnover of at least 750 million euro to give a series of information to the tax authorities, thus reducing evasion.
The information to be reported includes, among other things, the nature of the activities carried out in each jurisdiction, the number of employees, the revenues and profits recorded, as well as the taxes declared and paid. However, the implementation of the new requirements also involves some challenges, explains Maria Butcu, director at Deloitte Romania.
Maria Butcu: The Romanian tax authorities need specific tools to detect and investigate cases of tax evasion, and this requires significant investments in training, technology and other types of resources. The implementation of the directive will require coordination between the Romanian tax authorities and the tax authorities of other countries where multinational groups operate. This can be challenging, particularly in cases where there are differences in reporting requirements or where tax treaties between countries are unclear or inconsistent.
Deloitte specialists say that the implementation of the European directive in Romania will help the tax authorities to identify tax evasion and profit shifting and, finally, ensure that the tax system is fair and efficient for all.
Translated by: Radu Matei
