FPTR President Urges Authorities to Allow Businesses to Pay Damages in Installments or Reinvest Double the Amount
FPTR President Urges Authorities to Allow Businesses to Pay Damages in Installments or Reinvest Double the Amount
Mohammad Murad, the president of the Romanian Tourism Employers’ Federation (FPTR), stated that for old and not very clear accusations, any businessman can face a criminal case that prevents them from accessing bank loans and investing further. However, Murad estimates that the value of the damages caused then is much lower than what the state would lose if it closed those companies.
„In any tourism company that closes, the fate of 50-60% of employees is sealed: they go abroad, says Murad, who calculated that with the departure of each employee across the borders, the Romanian state loses 6,000 EUR annually in taxes and duties.”
The way „cases are built” will block financing; investors will no longer have the courage to invest because the future is uncertain, and all key people in companies will leave out of fear. If the current situation continues, Murad is convinced that in a few years, many Romanian companies will disappear, as has happened in the last 10 years.
He argues it is unproductive for administrators to be held accountable for what happened in 2007-2009, for damages of at most 50,000 EUR, which are not very clear, but for which a criminal case can be opened, in which case all companies „collapse directly,” and banks stop their financing even for a simple suspicion.
Murad believes that companies should be allowed to continue their activity and be facilitated, if necessary, with installment payments for damages from 10-15 years ago. Another idea would be for companies to be forced to invest double the damage from back then, a measure that would stimulate investment.
The FPTR President believes that the only solution is closer communication, especially with the Government, where lately there has been openness but also a total lack of knowledge on how to approach the issue.
In his opinion, the most painful thing is that with the disappearance of businesspeople, the Romanian market can no longer produce new ones.
Murad believes the state must be more balanced in relation to businesspeople and that the number one priority must be, as in Germany, for that company to be able to continue its activity. He proposes that ANAF should have the possibility to negotiate with any company so that in case of damage, the problem is resolved one way or another.
What is the FPTR’s proposal for companies with past financial irregularities?
The FPTR President proposes that companies should be allowed to pay damages in installments or be required to invest double the amount of the damage to ensure business continuity and avoid financial blockages.
How does the closure of Romanian firms affect the state budget?
According to FPTR estimates, the state loses approximately 6,000 EUR annually in taxes and duties for every employee who chooses to move abroad following a company closure.
What model does Mohammad Murad suggest for the Romanian fiscal authorities?
Murad recommends the German model, where the state’s priority is to maintain the company’s activity through negotiation and balanced solutions between tax authorities and businesses.
