Chisinau firm fined for tax evasion
A Chisinau-based real estate company has been ordered by a court to pay a fine of nearly 42 million lei to the state after being convicted of tax evasion.
The tax evasion scheme began in 2012 when the company's administrator started underreporting or omitting income altogether for several years. Initially admitting guilt and paying over 4 million lei in damages, the administrator later recanted their confession.
Between 2015 and 2017, the company's operations deteriorated further. With over 100 real estate agents, it employed a shadow workforce: most employees were off the books, and salaries were paid "under the table." This practice allowed the company to evade taxes, as the income of these employees was not reported to the state. Meanwhile, real estate agents faced minor penalties, such as fines of up to 70 euros, for trivial offences like not wearing a tie.
The Chisinau Buiucani Court ruled in favour of the State Tax Service, which had sought the recovery of 41,937,929 lei. While the court found the administrator and the company liable, they will not face criminal charges due to the statute of limitations. Nevertheless, the ruling mandates that the sum be paid to the state.
The verdict is not final, and until the appeals process is concluded, the administrator and the company are presumed innocent.
Translation by Iurie Tataru
