Buletin 3_4-2010 web.pdf - Curtea de Conturi a Republicii Moldova

evenue administration by StS
In 2009, STS administered 58 .1% of the proceeds
of NPB, including: 31 .2% – SB revenues,
91 .7% – ATU budgets revenues, 99 .3% – SSIB
revenues and 94 .2% – CHIF revenues .
Revenue collected – 100,7% against the plan,
by 2 .0% less than in 2008 .
Revenue of ATU budgets and SB – decreasing
(by 5 .7% and respectively, by 10 .9%); the factors
that influenced this were:
− incorrect tax forecasting;
− global financial crisis;
− inadequate tax administration;
−
reduction of the taxable amount by in-
creasing exemptions and refunds;
− evasion of taxes .
Instability of normative acts in the planning
and collection of revenues; delayed processing
of information on tax returns; the TSTI
inefficient control on the regularity of VAT receipts;
collection of income tax by MDL 289 .4
million less as compared to 2008 (97 .8%), VAT
insufficient collections + tax evasion .
The facilities provided under the Tax Code –
zero rate tax – had a negative impact on income
tax collection (less by MDL 289 .4 mln) .
Vat collection – StS
Tax evasion is a countrywide phenomenon
and the most significant problem in the accumulation
of income (a considerable reserve
and potential source to the budget .
findings similar to what was previously
found and reported by the Court of
accounts:
Failure to register as VAT payer; as a result
more deliveries than the amount set have
been made; no tax visits upon registration
and also after cancellation of registration as
VAT payers .
Deliveries based on outstanding tax invoices
after the cancellation of registration as VAT
payer – STS showed total inaction or delayed
actions:
−
−
deliveries of MDL 35 .9 million; VAT recor-
ding in the accounts – MDL 5 .9 million (according
to STS data);
in 7 cases – MDL 26 .1 mln deliveries, VAT
recording in the accounts – MDL 4 .4 mln,
which were not cancelled and withdrawn
from the account (identified by audit
team) .
According to the information system of MSTI
– 38 businesses have made purchases from
“ghost” companies in an amount of MDL
842 .5 mln; VAT recording in the accounts – by
reducing tax liability – MDL 140 .4 mln .
In 2009 – 209 cases of tax evasion by “ghost”
companies; the amount of estimated liability
≈ MDL 3 .8 billion, of which VAT ≈ MDL 3 .7 billion
(27 .2% of NPB revenue) .
Imperfect legal framework leading to budget
fraud by VAT refunds, in particular:
−
−
detection of companies with pseudo acti-
vity, exclusion of transactions made with
“ghost” companies from settlement with
SB, and the responsibility for all this is not
provided for, that is why the courts pronounced
the sentence in favor of the business;
there is no mechanism for removal of busi-
nesses from tax deductions in case of relationships
with “ghost” companies .
The mechanism for clearance of businesses’
arrears by seizing their assets is imperfect –
goods worth MDL 155 .5 mln are accumulated,
but unsold . The effect is minimal .
STS does not have structural capacity for effective
marketing, there is also the non-cooperation
with law enforcement agencies with relevant expertise
.
Non-cooperation between the LPAs and TSTI,
and poor tax controls lead to avoidance or reduced
accumulation of income in local budgets
.
Activity of some entrepreneurs working on
a patent basis does not fall within the legal
area of patent use (operations worth thousands
up to 1 mln; they do not change their
legal and organizational form – risk of fraud
and tax evasion) .
Lack of monitoring by STS of import transactions
and internal trade value chain for certain
products (meat, fish, citrus fruits) leads to
initiation of tax evasion schemes, and the sale
after does not recover the lost revenues .
In order to combat and reduce tax evasion,
Court of accounts suggests:
To set penalty rates by type of tax evasion; review
of the mechanism for tax controls;
To strictly look in the objective character of
businesses’ debts upon their occurrence before
re-phasing their payment;
9
Audit activity