Romania: 8.7 Million Lei Fraud Uncovered in Construction Sector Using Shell Companies

Romanian tax inspectors have uncovered an 8.7 million lei ($1.8 million) fraud in the construction sector. The National Agency for Fiscal Administration (ANAF) found that a company claimed fictitious labor expenses from four shell companies. These companies allegedly masked the true employment relationships and helped the firm evade payroll taxes.

The investigation revealed that the construction company declared purchases worth approximately 27 million lei from these entities. ANAF stated that the invoices were processed through the RO e-Factura system, a digital invoicing platform. Inspectors determined that the implicated shell companies were registered under straw owners who were unaware of the companies' activities. Some of these firms made sporadic, incomplete tax filings to appear legitimate.

ANAF reported that this scheme allowed the company to avoid its payroll tax obligations, defrauding the state budget. The agency's antifraud directorate will now refer the case to the relevant investigative bodies for legal action. ANAF emphasized its commitment to identifying and combating tax evasion schemes, particularly in sectors like construction known for fiscal risks.

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Through this evasion scheme, the company evaded its fiscal obligations related to the payroll taxes of the personnel used in its activity and defrauded the consolidated general budget of the state by approximately 8.7 million lei.