The Scourge of Inexorable Corruption 1.1

March 11, 2011

You can read the previous post in this multi-post commentary here.

Case Study in Corruption: Realitatea-Catavencu defrauds the Romanian People

The present anti-corruption investigation of the Romanian Press agency, Realitatea-Catavencu, is an interesting example of how difficult it is to overcome corruption.

Realitatea-Catavencu is a major media group in Romania that includes television, radio, print and new media networks including The Money Channel, Academia Catavencu and Realitatea TV (one of the leading news channels in Romania). This group is currently being investigated for tax-evasion practices on a sophisticated level. In lieu of a complete salary payment that is commensurate with the duties and responsibilities of a position at Realitatea-Catavencu, employees receive part of their salary in the form of compensation for intellectual property contributions.

In other words, Realitatea-Catavencu paid employees the minimum salary as salary and additional amounts of a negotiated salary through compensation for intellectual property. Realitatea-Catavencu used this scheme to evade the higher taxes on officially registered salaries. Salary taxes and various mandatory contributions can reflect up to 100% of a net salary, whereas taxes for compensation for intellectual property is about 16% . Read the rest of this entry »

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How to evaluate the value of an online business in Romania

August 10, 2007

Through the Interactive Advertising Bureau Romania (IAB Romania), I have received several queries about how to evaluate the value of an online business in Romania. The answer is an interesting problematic. However, I shall endeavor to provide my honest opinion of the current situation. But I’m not quite sure how my colleagues in Bucharest will feel about my candor.

Below, something relevant from Bob Dylan to set the tone of my honest opinion.

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Read the rest of this entry »