The tax authority in cash-stripped Romania -- the most corrupt country in Europe -- is planning to offer financial rewards to people who denounce individuals or companies for tax evasion, the Balkan Insight website reports today (September 17, 2012).
"The idea is based on the informer system in Sweden, whereby people are encouraged and rewarded to give information about the wealth of their neighbors and companies," the Finance Ministry's state secretary, Liviu Voinea, said.
Voinea added that the U.S. Internal Revenue Service uses a similar system, which offers a reward of 30 percent of the recovered amount.
Romania is under pressure to reform its tax system and increase the tax intake, since the country is losing millions of euros a year in unpaid taxes.
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