On average over 10 years, the average rate of trade misinvoicing for Romania as a percent of total trade with all global trading partners was 19.9%, equal to about USD15.25 billion, a recent study says.
“This is the value that has been illicitly moved through Romania’s trade, and as a result, has not been properly taxed by the respective authorities. This is quite high, meaning the amount of trade that is going undetected and untaxed is equal to nearly a fifth of all Romania trade,” says the Global Financial Integrity “Trade-Related Illicit Financial Flows in 135 Developing Countries: 2008-2017“, which surveyed trade-related illicit financial flows across 135 developing countries by trading partner, commodity, region, and percent of total trade, among other indicators. The research indicates trade misinvoicing, or trade fraud, is a major type of illicit financial flows and can be used to launder money, evade taxes and currency controls, among other illicit activities.
The countries included in this report are based on the International Monetary Fund classification system, which is comprised of 148 developing countries and 36 advanced economies. However, 13 of the developing countries did not report sufficient trade data to the United Nations to be included in this analysis.
The study also found that US$8.7 trillion is the sum of the value gaps identified in trade between 135 developing countries and 36 advanced economies over the ten-year period 2008-2017.