The Romanian insolvency law should be modified because it’s to permissive, according to Dragos Doros, the president of Romania’s National Fiscal Administration Agency – ANAF.

The state has been losing big amounts of money from firms that went into insolvency to take advantage of the holes in the law and avoid paying their taxes.

“Almost every company that enters insolvency leads us to the conclusion that we will not get much from it. We have proposed to modify the insolvency law so that we could recover at least the tax liabilities that were determined through court decisions,” said Doros, reports local Digi24.

ANAF has some EUR 17 billion to recover from local companies, but 80% of the money is lost because the companies are in insolvency.

The current law makes no difference between companies that go into insolvency due to real financial problems and those that do it just to avoid paying back the money they owe to their creditors, according to fiscal experts. This is because nobody is tracking where the insolvent companies’ money went.

editor@romania-insider.com