TAX PROFILING AS A TOOL FOR TAXING THE SO-CALLED UNJUSTIFIED INCOME IN ROMANIA

Cosmin Flavius Costas ()
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Cosmin Flavius Costas: Babes-Bolyai Univesity of Cluj-Napoca

EUFIRE Conference Proceedings Series, 2025, vol. 1, issue 1, 79-88

Abstract: We were always told that George Orwell's 1984 is just a fiction book, not a manual of instructions. But more recent events seem to suggest the contrary. A decade ago, tax authorities paid good money for income information from Switzerland or Liechtenstein even if such information was obtained in a fraudulent manner. DAC 6 put professionals of the (tax) death row and the increased exchange of tax information facilitated access to most of taxpayers' sources of income. As a result, tax authorities are now able to profile their taxpayers by determining their usual sources of income, certain expanses, shopping habits or random people they share the lunch bill with via Revolut. This type of profiling has recently led Romanian tax authorities into a fight regarding the so-called "unjustified income". We therefore investigate whether the concept is defined by Romanian tax law, the boundaries of the constitutional and legal framework, the mechanics of the audits, the burden of proof and the genuine probatio diabolica required in certain procedures and, on the whole, the adequate solution and the perspectives of such profiling.

Keywords: income taxation; unjustified income; tax information; tax audits; proportionality (search for similar items in EconPapers)
JEL-codes: K34 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cxa:eu2025:v:1:y:2025:i:1:p:79-88

DOI: 10.47743/eufire-2025-1-7

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