In Moldova, it is planned to raise the financial threshold defining minor tax violations, excluding the use of fines, from 1,000 to 5,000 lei for entrepreneurs and from 100 to 500 lei for citizens.
This is provided for by amendments to the Tax Code, which were developed by the deputy of parliament from PAS, chairman of the commission on economy, budget and finance Dumitru Alaiba. He noted that the purpose of this bill is to significantly reduce the administrative burden on entrepreneurs and ensure the proportionality of the application of fiscal sanctions. The MP recalled that, according to the provisions of the Tax Code, minor violations only stipulate the application of warnings, and there are no financial penalties for such violations. According to Dumitru Alaiba, the current threshold for which warnings are applied, which is 100 lei for individuals who are not engaged in entrepreneurial activities, and 1000 lei for individuals engaged in entrepreneurial activities and legal entities, is outdated and does not correspond to the current reality. This threshold was included in the Tax Code in 2015 and does not take into account economic growth and depreciation of the national currency, inflation, the dynamics of the average wage in the economy or other indicators. Dumitru Alaiba drew attention to the fact that, for example, if in June 2015 the threshold of 1,000 lei was 20.6% of the average salary in the real sector, in June 2021 it is only 10.5%. In addition, the cost of 1,000 lei from June 2015 has a completely different equivalent, taking into account inflation and the exchange rate. So, now 1000 lei is less than 50 euros, and any violation above this amount, even accidentally committed, is punishable by fines by the tax authorities. According to the deputy, entrepreneurs, especially small ones, often report on improperly applied sanctions, and this practice seriously hinders the fair conduct of business in the country. At the same time, raising the threshold for minor tax violations will give entrepreneurs more freedom to develop in a business-friendly state. Dumitru Alaiba recalled that one of the functions of the tax authorities is to provide support and advice to economic agents - the task on which the tax authorities of the EU countries focus in their relations with small and medium-sized entrepreneurs and citizens. Consequently, in cases where the offense is minor, a warning applies. This approach encourages conscientious taxpayers. The bill also reduces the likelihood of corruption and bribery associated with the sanctions process.// 08.11.2021 — InfoMarket
