Onecoin Tax Fraud Amounting to €400,000 Euros (EUR) Sought for Recovery in Romania
The OnCoin network has garnered a lot of unwanted attention in Romania from the lawmakers and authorities over duping the nation in unpaid taxes amounting to €400,000. The anti-fraud division of the National Agency for Fiscal Administration (ANAF), has identified 7.59 million RON ($1.8 million USD) collected by OneCoin affiliates.
The OneCoin affiliates in Romania came under the scrutiny of tax agencies after it failed to declare the complete collected amount and instead tried manipulating the agencies by mentioning the transaction fee. The anti-fraud division ANAF accused the affiliates of laundering the collected money out of Romania and trying to evade taxes by showing only the transaction fee.
OneCoin Affiliates Used Shell Companies to Launder Money Out Of Romania
The ANAF further accuses the delegates of purportedly showing a reduced owed taxes in order to “preserve the appearance of (OneCoin’s) legality”. The laundering of collected money was done by the affiliates using the old-age technique of shell companies, where they manipulated the financial sheets of these shell companies and took out major chunks of the received capital to evade the taxes.
The ANAF claims that the shell-companies used for the practice has no affiliation to Romania and was only used for the purpose of taking out money from Romania.
The ANAF has notified the prosecutors for the tax fraud and wait to see what can be done further to make sure the affiliates are brought to justice. The recent act of avoiding taxes by OneCoin might sound ironic to many, as the company has been promoting its services throughout Romania for over a year now.
OneCoin's Has a History of Money Laundering
The recent bust by ANAF of the OneCoin's affiliates laundering money out of Romania is not the first instance of the firm trying to evade taxes unlawfully. It also has a pending case in the United States, where the firm had been accused on similar lines.
The United States lawmakers after months of toil were finally able to indict one of the affiliates of Onecoin who goes by the name of Scott, on money laundering charges. The indiction was based on transactions of OneCoin investor funds between entities based in the US and abroad.
The indictment read,
“The indictment also contends that Scott should forfeit to the federal government any property or money traceable to the money laundering offense and that if any such property or money cannot be found, has been sold or has been diminished in value, the government should seek forfeiture of other property belonging to Scott up to the full amount of what should be turned over.”
The recent bust by Romanian anti-tax fraud agencies of a possible Money laundering scheme carried out by affiliates of OneCoin might not come as a big surprise for many as the OneCoin firm has been accused of the crime on a number of occasions. One such case even saw an indictment of one of the affiliates of the firm in the United States.
If OneCoin does not come up with a good excuse over its repeated tax-evasion fraud charges then, the company might see itself biting the dust and might go bankrupt. Whether the Romanian authorities are able to build a strong case against the affiliates and make them pay for their crimes, only time would tell.