Romanian insurance company City Insurance, controlled by an Italian businessman, is suspected to have avoided paying taxes on some EUR 75 million revenues in Italy in the last five years.

The Italian authorities found that the Italian subsidiary of the firm had EUR 75 million revenues which were not declared, and thus, not taxed. In addition, the firm is being investigated in Venice and Cagliari for allegedly illegalities in bids organized by public healthcare companies, according to the Italian media.

City Insurance, registered in Romania, allegedly obtained revenues from insurance via several intermediary firms in the Campania region, the home region of one of the firm's shareholders.

City Insurance ended 2011 with revenues of some EUR 47 million, while its gross profit stood at some EUR 4.8 million.

editor@romania-insider.com