Romanian tax control measures are becoming increasingly stringent, with ANAF doubling the amount imposed controls (despite only a 10% increase in the number of audits during 2024). This aggressive enforcement trend shows no signs of slowing down. In fact, documentary checks are expected to increase by 100% in 2025, signaling a new era of heightened fiscal scrutiny.

The Romanian tax authority now classifies taxpayers into three risk categories—small, medium, and high—based on specific criteria including tax registration status, submission of declarations, and payment compliance.

High-value transactions can quickly trigger investigations, such as real estate purchases exceeding €70,000, vehicles over €25,000, or bank deposits surpassing €34,000.

Furthermore, discrepancies exceeding 10% and at least RON 50,000 (approximately €11,000) between declared income and actual wealth can initiate a detailed investigation into your finances.

I have gathered critical information about ANAF's investigation criteria for 2025 to help you understand what might put you on their radar. 2025 is to be a year of major changes for taxpayers in Romania.

ANAF reveals new fiscal risk criteria for 2025

As I said before the National Agency for Fiscal Administration (ANAF) has implemented a robust classification system for taxpayers, categorizing them based on detailed risk assessment. This framework aims to enhance fiscal compliance while targeting enforcement efforts more efficiently.

Taxpayer classification: small, medium, high risk

ANAF now divides all taxpayers into three distinct risk categories as part of its comprehensive approach to tax administration. The classification—small, medium, and high risk—determines how intensively taxpayers are monitored and the likelihood of being selected for audits or inspections.

This risk-based approach allows ANAF to allocate its resources strategically, focusing more attention on high-risk entities while reducing the administrative burden on compliant taxpayers.

The risk classification directly impacts how tax procedures are executed. As stated in article 7 of the fiscal procedure code, "tax administration procedures are carried out according to the fiscal risk class or subclass in which taxpayers are classified as a result of the risk analysis performed by the tax body". Consequently, your risk category significantly influences how frequently your business faces tax inspections and the level of scrutiny applied.

Key criteria: registration, declarations, payments

The fiscal risk assessment system operates on four primary criteria categories:

1. Tax registration criteria - Evaluating the accuracy and completeness of business registration information
2. Tax return submission criteria - Assessing whether declarations are filed on time
3. Declaration level criteria - Examining the consistency and accuracy of reported information
4. Payment obligation criteria - Analyzing compliance with payment deadlines and outstanding debts

These criteria form the foundation of ANAF's risk assessment framework. For economic operators, additional specific indicators can trigger high-risk classification. These include newly established companies or those with ownership changes in the past 12 months, entities without economic activity for the previous 12 months, recently reactivated companies following inactivity, and businesses authorized in excise products during the previous year.

Moreover, businesses with inadequate fiscal history face heightened scrutiny. This includes companies with outstanding fiscal obligations requiring forced execution procedures, those failing to submit tax returns on time, entities that didn't respect installment schedules, or businesses whose associates or directors were previously involved with fiscally inactive, deregistered, or insolvent companies.

I strongly recommend to pay taxes in time. Paying taxes in time reduces the risk with a significant percentage. Pay your taxes with a smile as they are the low compared to Belgium or The Netherlands.

Reference to ANAF order 2.017/2022

The specific sub-criteria developed from the four general criteria categories were formally approved through ANAF order 2.017/2022. This order provides the detailed framework for risk assessment, offering transparency to taxpayers about how risk classifications are determined.

Additionally, order 417/1204/2025 has approved updated criteria specifically for determining economic operators presenting high fiscal risk, as stipulated by articles 375 and 435 of Law 227/2015 on the fiscal code.

These criteria primarily target businesses in higher-risk situations, especially those dealing with excisable products or showing patterns of non-compliance.

The risk assessment system serves ANAF's broader objectives beyond mere tax collection. As outlined in official documentation, the measures aim to "increase the level of tax compliance, reduce tax evasion, as well as reduce the administration costs and modernize the agency's activities". Through this structured approach to risk management, ANAF strives to create a more efficient tax administration system while focusing enforcement resources where they're most needed.

ANAF flags 11 red flags that trigger company investigations

In recent years, the National Agency for Fiscal Administration has refined its approach to identifying potential tax violations. ANAF now relies on a sophisticated system of red flags that automatically trigger detailed investigations into business activities. Understanding these warning signs can help companies maintain compliance with Romanian tax control regulations.

I would advise to read the indicators that I present very carefully and take them into account for your company and business in Romania.

Frequent changes in company structure or address

ANAF closely monitors businesses that repeatedly alter their organizational structure or registered location. This behavior may indicate an attempt to evade tax obligations or hide questionable financial activities. Companies that frequently change accountants, bookkeepers, or other financial advisors also face heightened scrutiny, as this pattern raises questions about why previous advisors may have resigned. High turnover of financial consultants potentially suggests a history of poor compliance with regulations.

Inactivity or failure to submit tax declarations

Perhaps the most direct trigger for ANAF intervention is the failure to submit required tax declarations. Under the Romanian Tax Procedure Code, "the taxpayer, legal persons or any other entities without legal personality not fulfilling their tax declaration obligations for two consecutive declaration" periods face automatic penalties. Furthermore, "the failure to submit the tax return gives the tax body the right to assess ex officio the tax". This means ANAF can independently determine your tax liability without your input, often resulting in higher assessments.

Outstanding debts and late tax payments

Unpaid tax obligations remain a primary trigger for investigations. Businesses with outstanding fiscal liabilities requiring forced execution procedures automatically enter the high-risk category. Additionally, entities that failed to honor previously arranged installment payment schedules face increased scrutiny. Even when non-payments are the result from legitimate commercial difficulties rather than fraudulent behavior, they still trigger attention from tax authorities.

Transactions with blacklisted or phantom companies

Regular business dealings with entities previously flagged for tax irregularities immediately raises red flags. This includes transactions with companies appearing on ANAF's blacklist or so-called "phantom companies" that exist primarily for tax evasion purposes. Likewise, suspense accounts, which are temporary accounts used when transactions cannot immediately be classified, often attract investigation as they may conceal the origins or purposes of funds.

Associates linked to previously delisted firms

ANAF carefully tracks connections between current business owners and previously problematic entities. Companies whose associates or directors were previously involved with fiscally inactive, deregistered, or insolvent companies receive automatic high-risk classification. This scrutiny extends to newly established companies or those with ownership changes in the past 12 months.

Repeated VAT number cancelations

The recent Court of Justice of the European Union ruling in Case C-164/24 addressed the issue of systematic cancelation of VAT numbers. Although the court ruled that "deregistering a taxpayer for formal infringements without assessing whether there was fraudulent intent or whether the situation was later remedied constitutes a disproportionate measure," ANAF still considers VAT registration issues a significant indicator of risk.

I had several companies where ANAF took the VAT number for outstanding debt to the state budget without investigating the condition of the company. I could recover most of them by paying the debts and negotiating with ANAF. However in some cases I failed to recover the VAT and the company had to stop activities or made the bankruptcy (mainly due to their own fault and behavior). In some case ANAF dissolved the company and the company could now longer carry out any activity. The company was also put on non active in the national register by ANAF.

Certainly, other warning signs can trigger investigations. These include:

• Disorganized or incomplete financial records suggesting attempts to obscure audit trails
• Unusual transactions deviating from normal business patterns
• Regular dealings with jurisdictions having weak AML regulations
• Avoiding face-to-face interactions with tax authorities

Overall, understanding these red flags allows businesses to better maintain compliance with Romanian tax regulations and avoid unwanted scrutiny.

ANAF monitors individuals for unjustified wealth accumulation

Beyond company audits, ANAF has intensified its scrutiny of individual wealth accumulation that cannot be justified by declared income. This personal finance monitoring represents a critical component of Romania’s broader anti-corruption efforts, particularly as the country "is seen as one of the European Union's most corrupt states".

High-value purchases exceeding income

The tax authority pays particular attention to individuals making substantial acquisitions that appear disproportionate to their official income. This vigilance stems from historical patterns where "tax evasion and bribery are a drain on public finances".

I've observed that ANAF specifically targets:

• Real estate transactions exceeding declared income capabilities
• Vehicle purchases substantially above income levels
• Luxury goods acquisitions incompatible with reported earnings

These discrepancies often trigger what tax professionals call "lifestyle audits," whereby ANAF examines whether your standard of living aligns with your declared income sources. Notably, this scrutiny intensifies for "public servants, employees or holders of a public office" displaying signs of "unjustified wealth".

Large loans to companies by shareholders

Another red flag in ANAF's monitoring system involves shareholder loans to companies. This practice has drawn significant attention because it potentially represents an avenue for tax avoidance. The concern mirrors that of other tax authorities, where "shareholder loans might be a way of abusing the tax deductibility of interest payments by disguising equity as debt".

The mechanism works similarly to systems in other jurisdictions where "the purpose of this loans to participators regime is to deter companies from making untaxed loans to their participators or allowing them otherwise to extract company funds untaxed, rather than paying wages, dividends or other income chargeable to tax".

Bank deposits and lifestyle mismatches

Financial institution reporting requirements give ANAF visibility into substantial banking activities. Deposits, withdrawals, and account balances that don't correspond with officially declared income inevitably trigger investigations.

Nevertheless, ANAF's enforcement capabilities have been strengthened through recent organizational reforms. "The tax authority has been through an overhaul aimed at helping it combat widespread tax evasion, and collection improved in 2015". Additionally, "anti-corruption prosecutors have cracked down hard on high-level abuses in recent years, investigating lawmakers, cabinet ministers, mayors and even former prime minister Victor Ponta".

Throughout this heightened enforcement period, ANAF has demonstrated a growing sophistication in connecting disparate data points to identify potential tax evasion. This approach includes analyzing:

• Lifestyle indicators versus declared income
• Travel frequency and destinations compared to financial resources
• Property ownership through intermediaries or family members

Therefore, maintaining accurate financial declarations and ensuring personal expenditures align with legitimate income sources remains essential for avoiding unwarranted investigation by Romanian tax authorities.

How ANAF conducts investigations step-by-step

The Romanian tax authority follows a structured four-phase approach when conducting investigations into taxpayers flagged by its risk analysis system. Understanding each step helps businesses prepare appropriately when facing scrutiny from fiscal authorities.

Initial risk analysis and data correlation

ANAF begins by analyzing taxpayer data through sophisticated risk models developed for each taxpayer category and type of tax. This process relies on both internal and external data sources stored in centralized databases. Currently, ANAF utilizes one centralized taxpayer register that all applications access. Risk assessment centers on four general criteria from the fiscal procedure code: fiscal registration, filing tax returns, declaration level, and payment obligations.

I've noticed that financing activities are now consistently flagged by ANAF's internal taxpayer risk evaluation system, with taxpayers increasingly required to explain warnings related to interest levels, intercompany debt, and various financial metrics.

Preliminary verification without notice

Once the risk analysis identifies potential issues, ANAF conducts preliminary verification without notifying the taxpayer. During this phase, inspectors examine available data to determine if a full investigation is warranted. Any ongoing audit or investigation is suspended once an anti-fraud investigation is initiated for a particular taxpayer, primarily to prevent information leaks.

Notification and 30-day compliance window

Subsequently, if concerning issues are identified, ANAF sends an official notice accompanied by an extract from the fiscal preliminary documented verification report and the charter of rights. This notice initiates a 30-day compliance window during which taxpayers must address identified issues or prepare for a formal audit.

A regular tax audit cannot lawfully start unless this grace period of 30 days has been provided beforehand. This represents an important legal protection for taxpayers, giving them time to gather documentation and consult with tax advisors.

Formal audit and document review

Finally, ANAF conducts the formal audit, which varies significantly in duration depending on case complexity. Simple cases may be completed in a single day, whereas complex cases involving multiple entities can take up to one year. For large taxpayers, tax audits cannot exceed 360 days by law.

The formal audit involves thorough examination of financial records, with ANAF having the right to immediate access to relevant information, documents, and premises. Inspectors can make copies of documents and take custody of data to prevent potential disappearance.

After the audit concludes, ANAF prepares a report detailing the legal basis for investigation, procedural steps, established facts, financial impact, and conclusions. If violations are found, penalties may include administrative fines and confiscation of funds.

What happens If you fail to comply with ANAF

Failing to meet ANAF's requirements triggers a cascade of increasingly severe consequences for both individuals and businesses under romanian tax control regulations. These punitive measures are designed to ensure compliance while recovering unpaid taxes.

Fines and penalties for non-declaration

The financial cost of non-compliance begins immediately with substantial daily penalties. For late tax payments, ANAF imposes interest of 0.02% for each day of delay. This compounds with additional late-payment penalties of 0.01% per day starting from the first day after the maturity date.

Even more concerning, tax obligations incorrectly declared or not declared face a steeper non-declaration penalty of 0.08% per day. This penalty decreases to 0.02% per day if fiscal liabilities are paid on time.

For businesses, specific violations carry targeted penalties:

• Non-compliance with e-reporting requirements: fines between 1,000-10,000 RON depending on company size
• E-invoicing violations: 15% of the total invoice value including VAT
• Refusal to accept mandatory card payments: fines of 5,000-7,500 lei

Account blocking and asset seizure

When penalties fail to secure compliance, ANAF escalates to more direct enforcement. The tax authority can assess, by default, all tax obligations for each fiscal period where returns weren't submitted. This assessment typically results in much higher tax bills than would have applied with proper filing.

Henceforth, ANAF may freeze bank accounts and seize assets to recover unpaid taxes. These measures can paralyze business operations and personal finances without court approval, as ANAF has administrative authority to pursue collection directly.

I had many cases where ANAF blocked the accounts of the company. You cannot do anything any more even if there are enough EURO’s in the EURO account. With a blocked account you cannot change them. So you pay in the RON account and the accounts will be unblocked after a little discussion with ANAF in 24 hours. This is a nice one in my opinion, one to remember. So again I advise to pay in time.

I should also explain what is “poprire”. “Poprire” is ANAF taking money directly from your RON account in order to compensate for outstanding unpaid bebt to the state. When there is enough money on the RON account then ANAF will simply take it and they will not block the accounts.

Criminal prosecution for tax evasion

Beyond financial penalties, serious non-compliance can result in criminal charges. While negligent tax evasion generally results in fines, deliberate evasion can lead to imprisonment.

Romania recently modified its approach to tax evasion prosecution. Damages under €1 million can avoid criminal punishment if fully reimbursed within 30 days of audit conclusion, plus a 15% increase along with interest and penalties. If reimbursement occurs by the first court hearing, the penalty is reduced by half.

Yet for serious offenses, penalties remain severe. Activities reducing the state budget by at least €1 million through fraudulent declarations or VAT manipulations can result in imprisonment from 7 to 15 years. Failing to withhold taxes or contributions is punishable by 1 to 5 years imprisonment.

I hope that I made controls by ANAF in 2025 transparent. I would like to conclude with the following:

We are there to assist if you have problems with ANAF. Just call me on +32 478 331 799 or mail me frjacobs@telenet.be

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