Romania’s minister for business, trade and entrepreneurship Florin Jianu presented the principles and mechanism of the new Prevention Law to the Government, on Friday.

Authorities will be able to sanction a company only if they have first warned and advised it on how to fix any tax irregularities, reports local Mediafax.

Inspectors will conclude a document on the discovered irregularities and will draft a compliance plan. The plan will mention what aspects need to be addressed as well as the term for complying. The deadline for compliance can’t be less than seven working days. After the compliance plan expires, authorities have the right to resume the control.

The Prevention Law will apply for sanctions provided by the Fiscal Code, the Labor Code, and the Accounting Law.

There are some exceptions to the law. The bill doesn’t apply, for example, if authorities discover that a company employs up to five people without an individual labor contract. The fine will amount between RON 10,000 and RON 20,000.

editor@romania-insider.com