The statement comes after the Court declared Cabinet’s Insolvency Code unconstitutional.
Premier Victor Ponta reacted harshly to the Constitutional Court’s decision that the emergency ordinance on the Insolvency Code is unconstitutional. “By declaring the Insolvency Code unconstitutional the Constitutional Court’s message for slick companies was that they can carry on with their tax evasion because they are protected, and this represents a powerful blow to all governments,” Ponta said yesterday. “The law we adopted was combating national-level tax evasion of companies from all domains, companies which, in order to avoid paying taxes and fees, were willingly filing for insolvency. The Constitutional Court’s decision represents support for tax dodgers and an important blow not only to the current government but to all governments that from now on will try to have higher budget revenues and to encourage fair companies. When I see companies that owe hundreds of millions to the state budget and following the Constitutional Court’s decisions yesterday continue to be protected in order not to pay taxes and fees, I can only notice a decision that seriously affects Romania’s development. I believe that dividing Romania into fair companies that pay taxes and slick companies that do not pay taxes and are protected by the Constitutional Court is extremely detrimental for the Romanian society,” the Premier stated, being quoted by Mediafax. Ponta argued that the government cannot build highways and earmark more funds for hospitals and schools if “nobody is paying any taxes” and “the slick ones not paying taxes are thumbing their nose at us.” However, when asked whether the Constitutional Court decision brings us back to the old insolvency law, Ponta stated: “To be very honest, I don’t know what the Court decided, because nobody knows exactly what it decided!”
The Premier also expressed his opinion on this issue during his visit to Ploiesti yesterday, accusing the Constitutional Court again of supporting tax evasion and of not allowing the government to fight against this phenomenon. “Many serious companies are paying these taxes with which we make up for the fact that other companies are not paying taxes and are eventually engaging in tax evasion, which I see that the Constitutional Court now supports by not allowing us to fight against it. (…) The current law is a law that encourages companies not to pay taxes, so it’s a bad law, and I’m very determined to change it,” the Prime Minister stated. The Constitutional Court admitted on Tuesday the exception of unconstitutionality raised by the Ombudsman in what concerns the government’s emergency ordinance on insolvency, and at the same time pointed out that the whole law is unconstitutional.
The Court ruled yesterday unconstitutional some provisions of the Unitary Pensions’ Law.