Romania’s Finance Ministry could award citizens who report suspected tax evasion, an official with the ministry said Thursday.
“We will analyze the Swedish whistleblower system, which has been operational for quite some time and which could be translated into the local legislation as well,” Liviu Voinea, state secretary at the ministry, told Mediafax.
Voinea is set to leave for Sweden in two weeks to study the country’s laws regarding value added tax payment and property tax collection.
The ministry official said the Swedish Tax Agency awards citizens who report on their neighbors, acquaintances or even companies when they believe that fiscal laws are being broken.
“The tax agency relies on the fact that citizens know best about the financial situation of their neighbors. Those who send in quality information about them are being exempted from paying taxes, or they receive an award,” Voinea said.
Sweden is not the only country that repays informants for ratting out tax dodgers. Recently, the US Internal Revenue Service awarded $104 million to an ex-banker who helped unveil a scheme in which Switzerland’s largest bank UBS aided American clients avoid paying taxes.
The IRS’s whistleblower program can award up to 30% of the additional tax, penalty and other amounts it collects following information provided by citizens.