Economic crime in Romania
Why should you be assisted by a criminal law lawyer specialised in a criminal trial in Romania?
Economic crimes hold significant importance in legal practice in Romania, being regulated by both the Criminal Code and special laws. Their importance arises not only from the large number of cases involving financial and economic crimes, due to the proliferation of such offenses, but also from the challenges faced during criminal investigations in understanding these cases (as they often involve extremely complex financial schemes), as well as in conducting such criminal inquiries (investigation plans).
Undoubtedly, investigating economic crimes requires a much higher level of complexity compared to other areas, as this complexity stems both from the purely technical nature of economic and financial mechanisms and from the intricate and laborious way in which evidence is gathered in such criminal cases. These aspects make the assistance of a criminal law specialist lawyer essential if you are accused of committing such an offense.
What are economic crimes, and what do they include in Romania?
Although there is no specific legal definition of economic crimes, they can generally be described as illicit activities conducted in the financial and economic domain. The main types of economic crimes incriminated by the Criminal Code include embezzlement, tax evasion, money laundering, fraudulent management, and unfair competition.
Tax Evasion in Romania
The crime of tax evasion in Romania is regulated by Article 9 of Law 241/2005 for the prevention and combat of tax evasion. According to this law, the following actions, committed with the purpose of evading tax obligations, constitute tax evasion offenses:
- concealing taxable or taxable sources;
- failing to record, partially or completely, commercial transactions or generated revenues in accounting records or other legal documents;
- recording expenses in accounting documents that do not correspond to real transactions or registering fictitious transactions;
- altering, destroying, or concealing accounting documents, tax records, or other data storage means;
- keeping double accounting records using different documents or data storage means;
- evading financial, tax, or customs inspections by failing to declare, fictitiously declaring, or inaccurately declaring primary or secondary headquarters;
- substituting, degrading, or transferring seized goods by the debtor or third parties.
Thus, tax evasion refers to situations where taxpayers deliberately conceal or ignore their tax obligations, leading to damage to the state budget.
Tax evasion offenses can be committed by individuals or legal entities, or by any non-legal entities that owe taxes or other contributions to the state budget.
Tax evasion is punishable by imprisonment from 2 to 8 years and the prohibition of certain rights, or by fines. An aggravating circumstance is provided in paragraph (2), increasing the penalty by 5 years if the damage exceeds 100,000 euros. Paragraph (3) further increases the penalty by 7 years if the damage exceeds 500,000 euros.
Money Laundering in Romania
The crime of money laundering in Romania is regulated by Article 49 of Law 129/2019 for the prevention and combat of money laundering and terrorist financing, stipulating that the following actions constitute money laundering offenses:
- Changing or transferring assets, knowing they originate from criminal activity, to conceal or disguise their illicit origin or to assist the offender in evading prosecution, trial, or punishment;
- Concealing or disguising the true nature, source, location, ownership, or movement of assets, knowing they originate from criminal activity;
- Acquiring, possessing, or using assets by someone other than the person who committed the crime, knowing they originate from criminal activity.
Unfair Competition in Romania
The crime of unfair competition in Romania is regulated by Article 2 of Law 11/1991 on combating unfair competition, stating that the following commercial practices violate fair trade customs and good faith principles, causing or potentially causing damage to other businesses:
- Denigrating a competing business or its products/services by spreading false information;
- Misappropriating clientele of a competing business using trade secrets or confidential information;
- Discrediting the reputation of a competing business through deceptive means;
- Any other commercial practices that violate fair trade customs and harm competitors.
A criminal lawyer in Romania from the Blaj Law team, with expertise in economic crimes, is ready to represent you and provide assistance throughout the entire criminal process.
