Tax Compliance and Sanctions in the Field of Transfer Pricing. Romania’s Position in the European Context

Sanctions for non-compliance with the arm’s length principle represent a key instrument for ensuring tax compliance in intra-group transactions. In the European Union, where tax regulations are influenced by OECD guidelines and domestic legislation, national approaches to sanction enforcement vary significantly. These differences can impact the strategies of multinational companies and the overall level of tax compliance. This study provides a quantitative analysis of the regulations and sanctions imposed by EU countries for breaches of the arm’s length principle, examining the severity, frequency, and impact of these measures. The aim is to identify regional trends and factors influencing the strictness of regulations, offering a foundation for understanding the fiscal behavior of European tax authorities.