On the Romanian Radio’s Claims Against Legal Entities

If you are a legal entity and do not benefit from Romanian Radio’s services, you may find it perplexing that this institution’s fees appear on your monthly electricity bill.

The organization and operation of Romanian Radio are governed by Law No. 41/1991, which, in Article 40(3), mandates that legal entities, as presumed beneficiaries, must pay a monthly fee for the institution’s services.

This legal provision has been repeatedly challenged on constitutional grounds. In every instance, the Constitutional Court has ruled that the provision does not violate the constitution, since, under the law, the obligation to pay only applies to legal entities that actually benefit from some form of service provided by the institution.

However, the flexibility in interpreting this public institution’s mandate, along with potential abuses, arise because while the law clearly defines exemption processes for natural persons, no similar stipulations are provided for legal entities.

Citing the above article, the radio broadcasting company has almost universally demanded that numerous legal entities fulfill their payment obligations. If not, it pursues legal action to enforce these claims and charges a late penalty interest of 0.02% per day.

The Constitutional Court, as the highest authority in constitutional protection, most recently issued a decision on October 29, 2013 (Decision No. 448), reaffirming that the law must be understood in this particular interpretation. Only those who actually receive a service from the institution are obligated to pay the fee, and both administrative authorities and courts are bound to adhere to this interpretation.

Romanian Radio’s public service status, which it frequently references, as well as the invoices it issues — which are neither signed nor accepted by the recipients — are insufficient grounds for any court to require payment of the fee.

Finally, let’s remember that the distinct characteristic of a fee, as opposed to a tax, is that while a tax provides no direct service in return, a fee entitles the payer to a tangible benefit. The law does not establish an absolute, irrefutable legal presumption regarding the fee’s payment obligation; to secure a favorable ruling, the claimant must substantiate their claims and demonstrate the actual provision of services.

A seasoned state enterprise may be able to “create something out of nothing,” but one should consider: is it worthwhile to pay for nothing, especially when the law and favorable legal precedents are on your side?

It seems that few people exercise their rights, and by applying the law of large numbers without much resistance, Romanian Radio’s business strategy continues to prove profitable.