The anti-fraud department within Romania’s tax agency ANAF has discovered a damage of over RON 613 million (EUR 136.2 million) to the state budget in a complex fraud scheme involving several alcohol producers of the Euroavipo group, as well as ANAF employees.

The controls were carried out by 180 tax inspectors at 38 companies of the Euroavipo group in 2014. The anti-fraud department notified the anti-corruption directorate (DNA) on this case nicknamed “Murfatlar”, as the Murfatlar wine maker was the best-known company of the Euroavipo group.

Three days ago, the prosecutors have begun the prosecution and detained ten people, including investors and ANAF employees. Romanian investor, George Ivanescu, one of Murfatlar’s shareholders, was among those held and charged with tax evasion.

The fraud mechanism was based on false invoices issued by companies in the group to other companies for substantial values. One of the group’s companies, Oana Management SRL, issued an invoice of EUR 220 million to Euroavipo. Based on this overestimated invoices, the companies avoided paying VAT and even filed for tax reimbursements. They gradually gathered debts to the state budget and became insolvent.

The prosecutors also detained Ioana Toma, former legal director within ANAF.

editor@romania-insider.com