State Tax Service

ACTIVITY REPORT

2015

Report on the activity of the STS during 2015

2

Table of Contents

I. FOREWORD....................................................................................................................3

II. STS ACCOMPLISHMENTS IN 2015............................................................................5

III. INCREASING THE EFFICIENCY OF TAX REVENUE COLLECTION.............10

IV. ADMINISTRATION OF TAXES AND DUTIES – A NEW APPROACH...............24

V. E-SERVICES: EASY, QUICKLY, ACCESIBLE.......................................................26

VI. FIGHTING TAX EVASION..........................................................................................32

VII. MODERNIZING STS – PRIORITY OF THE YEAR.................................................33

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I. FOREWORD

Esteemed friends,

With regards to the performance assessment for 2015, the Ministry of Finance appreciated the activity

of the State Tax Service as “very good”, considering the control exerted by STS over the observance of

the tax law, correct accrual and full and timely payment of the amounts of tax liability to the budget.

Thus, the Ministry of Finance confirmed that STS ensured the compliant and integral execution

of revenues to the National Public Budget and took legal measures to reduce arrears, and controlled the

observance of the law in force, including with regards to the correctness of accrual, full and timely

payment of tax liabilities. This is our joint success, esteemed colleagues, for which I am deeply

grateful to all the employees of STS who worthily honoured their job duties!

As a matter of course, the efficient activity of the State Tax Service can be explained by the

implementation of European modernization reforms, by the promotion of voluntary tax compliance

policies and by the turning of the STS into a taxpayer-friendly control authority. We are very

ambitious to improve voluntary compliance, which is, actually, the most efficient and easy way to

collect budget revenue. The taxpayers who resolve to comply voluntarily are aware that taxes are the

price we pay to have a prosperous society, that the revenues from duties and taxes cover the greatest

part of public spending and that the system of an efficient administration is founded on the principles

of paying depending on capacity and of receiving depending on needs. The citizens must understand

that paying taxes represents their contribution to the development of the entire society. What we want

is to develop a partnership between STS and taxpayers, a tax administration close to the citizens and

the business environment that would provide them a complete and modern system of services and

simplified and friendly procedures.

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The view of the State Tax Service with regards to the provided services, is to develop a

partnership between STS and taxpayers, a tax administration close to the citizens and the business

environment by putting the taxpayer at the center of the system, in line with the slogan coined in 2013

– “Tax officers in the service of taxpayers”. The national tax authority has the intention to establish a

relation based on mutual trust and respect with the business environment, as it is extremely important

for the taxpayer to understand their tax burden, be aware of how important it is to correctly report and

pay taxes and duties owed to the State Budget so as for the State, in its turn, to be able to provide

citizens quality services.

By the State Tax Service Modernization Project – which was developed and submitted for

approval to State authorities – we mean to establish a new approach towards the relation between the

state and the taxpayer, which would be based on transparency and fairness. This will imply rethinking

and redesigning the entire tax system. The major principles of this reform are transparency,

simplifying and reducing tax compliance costs – as far as business operators are concerned, and tax

administration costs – as far as public authorities are concerned. It is worthy of note that the tax

administration modernization project enjoys the support of development partners, the World Bank

being ready to provide USD 20 million for the implementation of STS European modernization

reforms.

Esteemed friends, as we are willing to establish European standards of living, we understand that

we will reach the set objectives only by making the activities we are carrying out more efficient, by

promoting reforms and major changes at all layers of our society. Making the State Tax Service more

modern and efficient is a separate element of the entire chain of reforms started countrywide, and all of

our efforts are meant to transform the tax authority into a modern, efficient and taxpayer-friendly

institution. We may state, in the end, considering the appreciation by the Ministry of Finance and also

by several specialized international institutions that the State Tax Service has brilliantly met the

commitments it made for the last years, which proves the appropriateness of the set objectives.

Esteemed colleagues, I urge you to continue in 2016 the European modernization of STS, and to

become – as a State authority – a good friend of the taxpayers and, by means of reforms and by

working unsparingly, to ensure the efficient collection of revenue to the Budget. In a good hour!

Head of MSTI,

Ion Prisacaru

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II. STS ACCOMPLISHMENTS IN 2015

During the year, the State Tax Service (hereinafter referred to as STS), under the motto “Tax

officers in the service of taxpayers”, worked in order to attain the main objective, and particularly – to

increase the level of voluntary compliance to the provisions of the legislation in force by taxpayers by

applying new and efficient methods of interaction and communication, so as to provide free assess to

consultations and ensure fairness in all actions undertaken by STS.

Tax Revenue – Increasing

An inexpugnable sign of the tax

administration activity is represented by

the accruals to the National Public

Budget. STS continues to efficiently

manage the accrual of revenue to the

Budget, and during 2015 MDL 25.1

billion were funneled into the NPB,

which is by 7.3% more than in 2014.

The dynamics of the share

revenues to the State Budget

administered by the STS in the total

revenues to the SB for 2010-2015

indicate a considerable increase the

contribution of the national tax

authority. Thus, in 2010, STS

provided for 31% of the revenues,

whereas in 2015 – for 42% already.

Achieving such results was possible thanks to a good coordination of the activity of the

institution and to the assiduous promotion of reforms aimed at the European modernization of STS,

these innovations being implemented with the support of international development partners. What

guaranteed this success was the fact that STS turned from a control institution into one that would

provide the taxpayers the best services, that would decrease business management costs, but also the

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efforts of the national tax authority oriented towards gathering revenue to the Budget in a period that

was difficult because of economic and socio-political instability.

Arrears – on the Decrease

The year 2015 was marked by a historic performance with regards to the extinguishment of

liabilities to the National Public Budget, as STS managed – for the first time in the history of STS,

after the tax amnesty – not only to ban the increase of arrears, but to reduce them substantially. In

2010, the arrears accounted for MDL 1146,1 million, whereas in 2014 – they increased up to MDL

1674,5 million. Thanks to the change in the methodological approach towards the enforcement of legal

norms for the extinguishment of arrears, in 2015, following the qualified actions undertaken by STS –

the amount of arrears decreased down to MDL 1035,8 million.

Results of the Control Activity

During 2015, as many as 56,936 tax controls were conducted, which is by 3464 tax controls less

(5.7%) than in the previous year (60,400 tax controls).

The number of tax controls where tax law violations were found increased by 2626 instances, i.e.

by 9% in comparison with the previous year (33,101 controls in 2015 compared against 30,475

controls in 2014), and the amount of taxes, duties and other payments, including sanctions – accrued

additionally to the budget as a results of the conducted tax controls – increased by MDL 269,032.3

thousand, i.e. by 22% in comparison with the previous year (MDL 1,470,214.3 thousand, including

sanctions – MDL 610,363.5 thousand in 2015 compared to MDL 1,201,182.0 thousand, including tax

sanctions in the amount of MDL 457,828.3 thousand in 2014).

Concurrently, the collected amount of taxes, duties and other payments, including sanctions

decreased by MDL 50,138.1 thousand, i.e. by 28% in comparison with the previous year (MDL

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130,811.5 thousand, including tax sanctions in the amount of MDL 59,708.5 thousand in 2015 in

comparison with MDL 180,949.6 thousand, including tax sanctions in the amount of MDL 64,561.5

thousand in 2014).

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

2012 2013 2014 2015

63 527

74 029

60 40056 936

No

of

tax

con

tro

ls p

erf

orm

ed

Tax controls performed during 2012 - 2015by all methods

8

2012 2013 2014 2015

43 670 40 118 30 475 33 101

68,7% 54,2% 50,5% 58,1%

43 670 40 118

30 475

33 101

68,7%

54,2%50,5%

58,1%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%N

o o

f ta

x co

ntr

ols

wit

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utc

om

es

Ou

tco

mes

of

tax

con

tro

ls

Number of tax controls performed during 2012 - 2015 by all methods and

their outcomes

9

0,0

200 000,0

400 000,0

600 000,0

800 000,0

1 000 000,0

1 200 000,0

1 400 000,0

1 600 000,0

2012 2013 2014 2015

595 964,9653 046,1

1 201 182

1 470 214

Tota

l cal

cula

ted

am

ou

nts

(th

ou

san

d M

DL)

Amounts calculated additonally as a result of the tax controls performed during 2012 - 2015 by all methods (thousand MDL)

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III. INCREASING THE EFFICIENCY OF TAX REVENUE

COLLECTION

Taxpayers' Compliance

The activities carried out in relation to voluntary compliance aim at preventing shirking from the

payment and accrual of taxes, tax violations as well as the legalization of businesses in shadow

economy, by registering business operators in the established manner and by assigning a legal status to

all kinds of activities carried out.

Thus, according to the 2015 Tax Compliance Program, based on the pattern for the management

of business operators’ non-compliance risks, a list of taxpayers was made, who were going to be

monitored by territorial STIs in 2015 in order to ensure compliance of taxpayers working in the field

of wholesale and retail trade, manufacturing, transport and communications, and constructions.

After analysing the information regarding the results of taxpayers’ monitoring under the

Voluntary Compliance Program conducted by territorial STIs during 2015, it came out that the amount

of tax liabilities accrued to the national public budget for 2015 is of MDL 1,341,218 thousand, i.e. by

MDL 228,524.1 thousand more than in the same period of the previous year – which is an increase by

about 120.5% on average, including per fields:

manufacturing – increase by 117.59%, i.e. by MDL 36,308.1 thousand;

construction – increase by 111.69%, i.e. by MDL 8,696.3 thousand;

wholesale and retail trade – increase by 123.34%, i.e. by MDL 176,550.3 thousand;

transport and communications – increase by 109.24%, i.e. by MDL 6,969.4 thousand.

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The amount of tax liabilities accrued to the national public budget is of MDL 1,381,931

thousand, i.e. by MDL 263,922.1 thousand more than in the previous year – increase by 123.61%,

including per fields:

manufacturing – increase by 124.66%, i.e. by MDL 50,881.7 thousand;

construction – increase by 110.02%, i.e. by MDL 7,881.6 thousand;

wholesale and retail trade – increase by 126.11%, i.e. by MDL 199,427 thousand;

transport and communications – increase by 108.28%, i.e. by MDL 5,730.9 thousand.

Based on 18,745 administrative offence protocols drawn up for carrying out illegal activities,

administrative offences in the amount of MDL 17,996.50 thousand were imposed, MDL 8,114.27

thousand of it being paid during the reporting period, i.e. in full, using the right to have the fine

reduced by half if paid within 3 days.

As a result of monitoring taxpayers subject to controls – as many as 4,267 were brought under

the legal framework, including by issuing 3,496 entrepreneurial patents; by hiring as salaried

employees 391 persons; 114 sole proprietorships, 116 limited liability companies and 150 peasant

homesteads were registered.

Based on as many as 1587 control reports, 845 decisions on law violations were issued,

additional taxes, duties and other payments being thus accrued to the budget in the total amount of

MDL 11,921.9 thousand, including by indirect methods and sources – MDL 5,955.06 thousand, MDL

6,516.2 thousand of which were paid during the reporting period.

The share of taxes and duties accrued per MDL 1 of sales in 2015 increased by 129,1%, i.e. by

0.0071 bani per MDL 1 of sales more than in 2014, including per fields:

manufacturing – increase by 117.4%, i.e. by 0.0067 bani per MDL 1 of sales;

construction – increase by 140.5%, i.e. by 0.0128 bani per MDL 1 of sales;

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wholesale and retail trade – increase by 129.4%, i.e. by 0.0063 bani per MDL 1 of sales;

transport and communications – increase by 170.6%, i.e. by 0.0215 bani per MDL 1 of

sales.

The share of taxes and duties accrued per MDL 1 of sales in 2015 increased by 132.2%, i.e. by

0.0079 bani per MDL 1 of sales more than in 2014, including per fields:

manufacturing – increase by 124.2%, i.e. by 0.0094 bani per MDL 1 of sales;

construction – increase by 138.2%, i.e. by 0.0128 bani per MDL 1 of sales;

wholesale and retail trade – increase by 132.2%, i.e. by 0.0070 bani per MDL 1 of sales;

transport and communications – increase by 166.9%, i.e. by 0.0189 bani per MDL 1 of

sales.

MSTI Compliance Council Supports Voluntary Tax Compliance

During 2015, two meetings of the Compliance Council of the Main State Tax Inspectorate took

place in MSTI. The issues addressed at the meetings were about the activity of business operators:

- trading in means of transport by consignment;

- carrying activities of investigation and protection of peoples’ property.

The following were examined at the meetings:

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- violations found during the conducted controls;

- risks that these types of activities are exposed to (no record-keeping of the vehicles for sale,

not recording all revenues in the accounting records, making payments among residents in foreign

currency, risk of paying under-the-table-salaries and informal employment, insignificant amounts paid

to the NPB in comparison with the registered turnover, shirking by individuals (vehicle owner) from

reporting the revenues gained after the vehicle was sold, concluding transactions with enterprises

suspected of being shell companies, salaries registered in the accounting records are much smaller than

the average salary indicator per branch, undue increase of expenses in the accounting records);

- compliance indicators, particularly on taxes and duties paid to the NPB per MDL 1 of sales

declared in 2014 (bani), on the average salary reported by the taxpayer in comparison with the average

salary per economy/branch in 2014, about taxpayers’ profitability in 2014, the information being

presented in diagrams.

The taxpayers were warned about the need to voluntarily come in line with the legal provisions

as soon as possible, by stressing out the fact the purpose of the Tax Service is not to sanction

taxpayers, but to educate them in keeping with the spirit of observance of the law in force.

Thus, taxpayers’ activity in the fields examined at the meetings will continue to be monitored,

and in case of non-compliance, STS will take all measures provided for in the law in force.

“Sector Tax Officer” Pilot Project

In order to establish and maintain trust-based relationships with the taxpayers and to enlighten

the society in fiscal matters, STS encourages direct, pro-active and tailored communication with the

taxpayers through the “Sector Tax Officer” pilot project. Thus, as part of the project and in order to

achieve a higher tax compliance (7+4 tax bodies were involved), STS took the decision to appoint

Sector Tax Officers to monitor the transparency of taxpayers’ legal activity by sectors.

As a result of aggregation of data, the following results of the activity of the tax officer in the

sector of tax administration were found for the period between March and December 2015 (under

the pilot project),

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At the same time, the number of apartment tenancy agreements and of other registered property

increased by 882 agreements in comparison with the same period of the previous year. The collected

amount of taxes out of the value of agreements increased by MDL 420.4 thousand.

Taxpayer’s Friend

In 2015, alongside the implementation of the “Sector Tax Officer” Pilot Project, the “Taxpayer’s

Friend” Project was launched. It envisages engaging active persons from among the taxpayers, and it

led to the promotion of fiscal civic attitude in Moldovan society, as well as to the improvement of the

relationship between the tax authority and taxpayers, so as for the tax officer to be at the service of the

taxpayers who would proudly honour their tax liabilities, since they would be well-informed.

Sector tax officer

3,654 entities

found to work

illegally

10,819patents issued

MDL 14,785

charged for

issuance of patents

875units

annuled

1 338newly

registered units

455newly

registered taxpayers

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Activities Aimed at Eliminating the Payment of Salaries Under the Table and Informal

Employment

To stay in line with the law in the field of employment and protection of employees’ rights, as

well as to take measures against informal employment and payment of salaries under the table, taking

as a basis the Joint Regulation on the Activity of Multi-disciplinary Teams, approved by the Joint

Order of MSTI No 393, SLI No 12, GPI No 82, National Trade Union Confederation of Moldova No

150 of 05 May 2015, the signatory bodies of the Regulation took – in the period between 01 January

2015 and 31 December 2015 – a set of actions according to their competences.

Thus, during 2015, as many as 3,424 taxpayers were subject to on-the-spot controls and/or to

controls by indirect methods and sources of estimation of tax liabilities. Following the controls

conducted by STS, as many as 1,587 control reports were developed, and 17,594 administrative

offence protocols were drawn up for illegal activity, 2,424 administrative offence protocols were

drawn up according to competences in which violations and deviations from the laws and regulations

were recorded.

The actions consisted in conducting controls together with representatives of the territorial

subdivisions of NTUCM and of the State Labour Inspectorate. As many as 69 controls were conducted

to check whether the labour legislation and occupational safety and health standards were observed, 22

petitions and 7 notifications were examined, 4 occupational accidents were investigated.

These actions had both direct and indirect impact on the revenues to the budget. Thus:

- the revenue to the national public budget managed by STS in terms of income tax on salary

increased by 11.9% in comparison with the same period of the previous year, and reached the amount

of MDL 2,690,439 thousand for 2015, in comparison with MDL 2,403,881.7 thousand for 2014;

- the revenue to the state social insurance budget (in total) increased by 11.4% and reached the

amount of MDL 8,914,937.9 thousand for 2015, compared to MDL 80,022,796.9 thousand for 2014;

- the revenue to the compulsory health insurance (in total) increased by 19.1% in comparison

with the similar period of the previous year and reached the amount of MDL 2,765,989.1 thousand for

2015, compared to MDL 2,321,998.5 thousand for 2014.

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Tax Posts

224 tax posts were monitored during the reporting period. 150 of them were established during 2015,

whereas 74 tax posts were established in the previous reporting periods and they continued to carry out

their activity in 2015 as well.

At the same time, 48 tax posts were established during the reporting period, having the task to

generally analyse certain types of activity.

As a result of the activity carried out by the tax posts aiming at stopping pseudo activity , the

efficiency indicators are the following:

Main Efficiency Indices 2015

Total 55

Deregistered as VAT payer 10

Entire activity stopped 21

Conclusion of suspicious transactions stopped 19

Tax burden increased 3

Share of posts registering results 96%

The efficiency of tax posts expressed in the form of payments to the NPB is presented hereunder:

Thus, the payments related to the National Public Budget made by the taxpayers monitored by tax

posts increased in 2015 compared to 2014 by MDL 46,223.7 thousand (i.e. about 113%) and thus, the

payment of VAT increased by MDL 3,315.8 thousand (i.e. by about 20%).

Enforced Collection of Tax Liability

For the debtor taxpayers to pay their tax liabilities, the territorial tax authorities used methods of

enforced collection provided for in the Tax Code, by means of which, as of 31 December 2015, MDL

897.2 million were collected, i.e. by MDL 397.2 million more than as of 31 December 2014, of which:

0

20000

40000

60000

80000

100000

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- MDL 710.1 million were collected from bank accounts of debtor taxpayers and their debtors, i.e.

by MDL 336.5 million more than in the same period of the previous year;

- MDL 83.4 million were collected as money from the cash desks of debtor business operators, i.e.

by MDL 8.8 million more than in the same period of the previous year;

- MDL 82.5 million were voluntarily paid by the debtors because their property was put under

sequestration, i.e. by MDL 53.3 million more than in the same period of the previous year;

- MDL 3.1 million were collected after the sequestrated property was sold, i.e. by MDL 1.6 million

more than on 31 December 2014.

Since the beginning of 2015, as many as 26.016 decisions on the suspension of operations on

bank accounts were issued to 19.176 business operators.

Also, as of 31 December 2015, property was put under sequestration as a means of enforced

collection of tax liabilities in the amount of MDL 205.3 million, which, along the way, will be sold, and

the collected amounts will be transferred to the budget.

Result Indicators Ensure Performance

It is worth mentioning that the aforementioned performance was possible thanks to the

fulfilment of joint and individual objectives accompanied by results indicators, which mobilized teams

and employees, creating thus a competitive environment; thanks to the implementation of revenue

forecast methodology for all the components of the NPB, which replaced the old practice of

developing revenue accrual plans; thanks to the fact that the focus was on combating illegal

entrepreneurial activity, and also due to the fact that result indicators were set etc.

Promotion of Voluntary Tax Compliance

“Tax education or voluntary tax compliance is not an innate gift,

it involves educating and engaging the entire society.”

Tax education or voluntary tax compliance is not an innate gift, it is something that has to be

learned and it means being cultivated in people, from tax officers to the entire society – said the Head of

STS, Ion Prisacaru, at the beginning of 2015, on the occasion that an awareness raising campaign on civic

and fiscal behaviour among STS employees started. This campaign determined the change in the

psychological behaviour of STS employees, and in that of taxpayers as well, meaning that they

acknowledged the social effect of paying taxes and duties, it fostered the development of voluntary tax

compliance, and it contributed to the reduction of tax evasion.

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Taxpayer ’s Fr iend

To promote voluntary tax compliance, keep the good tradition of establishing and

maintaining a trust-based relationship with the taxpayers, educate the population on fiscal

matters – STS launched the “Taxpayer’s Friend” Project. Starting with 2015, drawing on the

best European practices, the Project engaged the civil society in educating taxpayers. To this

end, the tax officials developed a set of teaching and methodological materials that were

uploaded on the internal website, as well as handed out to people appointed as “taxpayer’s

friend” from the civil society who wish for the country to flourish and for the taxpayers who

continue to carry out activities they do not report – to comply voluntarily.

At the beginning of 2015, the territorial tax inspectorates managed to engage 31

taxpayer’s friends in the Project, but their number increased up to 89 by the end of the year.

The persons identified as well-known in the field of tax administration were trained on

these matters, and they provided their support in carrying out workshops for taxpayers,

students, pupils, in distributing flyers on a range of topical matters. Several awareness raising

campaigns were carried out and contests were held with a view to educating the society in the

fiscal field.

With this in mind, in 2016, the territorial STIs will identify the most active partners,

who will later be awarded Certificates of Merit “in Recognition of the Most Active Taxpayer’s

Friend”.

Mind Gam es and t he Cup of t he Head of STS

In 2015, the representatives of STS had the honour to participate in two important

clubs: Moldovan Mind Games Club and the Debate Club.

The concept of the organization of mind games for the Cup of the Head of the STS was

developed and approved. The event took place on 28 June 2015.

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20

Debat es at t he event organized f or t he Cup of t he Head of t he

STS

Taxpayer Educat ion

A particular focus was put on educating taxpayers by means of workshops, articles and

handbooks developed by the STS. Thus, as a matter of priority – in the period that the income tax

return is to be filed, tax officials appeared in about 27 radio and TV shows, 5 regional workshops were

organized for taxpayers, which allowed for the training of about 2000 taxpayers from all over the

country. At the same time, through the AIS “Message Dissemination” function, the subscribed

taxpayers were periodically sent notifications about the deadline for reporting and paying tax

liabilities, newsletters, the tax calendar, the Informative Bulletin of Regulations etc. To receive

notifications through the AIS “Message Dissemination” function, the taxpayers have to subscribe by

going to https://servicii.fisc.md/diseminare.aspx.

Taxes Seen Through Children's Eyes

On 28 July 2015, the first open-air drawing contest, entitled

“Taxes Seen Through Children's Eyes” was organized in Stefan

cel Mare Central Park, meant for the upgrowing generations.

The contest was the first of the events organized on the

occasion of the 25th anniversary of the Tax Service in the Republic of

Moldova.

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In the beginning, the children were briefed in a simple language about what taxes are and why

they are important, whereafter they drew what they understood of it either on paper or on the ground.

The authors of the best drawings were rewarded at the end of the contest with certificates and

gifts, but all the participants in the contest were given certificates of participation, baseball caps,

balloons and ice-cream. It is worth mentioning that this contest was carried out all across the Republic

of Moldova by all territorial STIs.

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Taxes as they are understood by children, in verses

As we are very much loved by mommy and daddy,

They pay the taxes for us to be happy.

Money is collected from all parents to the budget,

And then schools are built, and also –

kindergartens.

A road was built out of daddy’s paid taxes,

For us to arrive quicker to grandparents’ houses.

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Out of mommy’s taxes, our grandparents get their

pensions,

They worked very hard, and deserve attentions.

When I grow up, I’ll also pay my tax,

So as for those without parents to have what I

have.

Up till then, to you we are grateful

For working, paying taxes, and being very helpful!

To see other pictures, go to:

https://www.facebook.com/media/set/?set=a.1149931785022722.

1073741829.530504480298792&type=3

The Job Fair

The traditional Job Fair, that was attended by all those interested, was organized on 28 and

29 June in Stefan cel Mare Central Park, around the Arch of Triumph, and in all of the district centers

across the country. The persons who came to the fair were informed about employment opportunities,

conditions and advantages provided by STS, and that those who meet the legal requirements can get a

job in the tax authorities. The State Tax Service is an attractive workplace thanks to the following

advantages:

guaranteed wage;

guaranteed annual leave;

full social package;

joining trade unions;

premium paid for joint performance and on the occasion of holidays;

on-going professional development;

professional advancement.

Although a job in STS is very attractive, the staff turnover in 2015 was of about 14% because of

the workload per employee.

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Online Assist ance t o Taxpayers

Popularizing the tax law, promoting voluntary tax compliance and providing assistance to

taxpayers played an important role in the fulfilment of the objective to increase the degree of tax

compliance.

In this regard, the actions of the State Tax Service included both the examination and filing of

explanations for taxpayers’ written requests, and providing methodological assistance through the

“Single Call Center” 080001525.

In total, as many as 26,690 consultations (2014 – 29,508 consultations) were given throughout

the year by the call centre on matters related to the tax law, including:

- regarding income tax – 9445 calls;

- regarding the value added tax and excise tax – 6319 calls;

- regarding local taxes and duties – 2905 calls;

- other questions – 8021 calls.

IV. ADMINISTRATION OF TAXES AND DUTIES – A NEW

APPROACH

During 2015, STS made a change in the way it approached and applied the tax and policy rules,

establishing new methodologies, objectives and performance indicators with regards to the

25

administration of taxes and duties, which determined the increase of collected revenues to the budget,

as well as the decrease of arrears.

As for the administration of the income tax, it is worth mentioning that the second phase

whereby the mechanism for the filing of the pre-filled income tax returns was improved, took place in

2015. This regulatory and informative tool allows for the income tax return to be generated based on

the information that is already available in the IT System of the State Tax Service from indirect

sources. It is worthy of note that this mechanism is the first of its kind in Eastern Europe and among

ex-Soviet Union countries. It was inspired from the best practices in Western Europe, particularly,

from Scandinavia. An internal tool generating, printing and processing individuals’ income tax returns

was, thus, developed (by using the QR Code). This application contributed to a considerable decrease

in the time spent to attend to a taxpayer both with regards to the filling in of the return form and with

regards to the time spent for submitting it. This determined the increase in the number of taxpayers

complying voluntarily. Thus, in 2015 – as opposed to 2014, the number of returns filed before the

deadline increased by 24 thousand (i.e. by about 20%), and in the first quarter of 2015 (period during

which the income tax is paid) the amount of collected revenues increased by about 28% in comparison

with the previous year, the level of collection exceeding the amount expected to be collected by

66.3%. At the same time, given that the pre-filled returns have a QR code, their further processing time

decreased 3 times (from 79 seconds per return – down to 26 seconds per return).

Regarding the administration of local taxes and duties – to streamline the accrual and

reporting of tax liabilities by the taxpayers with regards to taxes on immovable property and land tax,

from the perspective of the amendments made to the Tax Code, the form of the unified return was

developed and approved – Accrual of Immovable Property Tax (Form BIJ 15), which replaces 3

former forms for such tax (Form BIJ 1, Form BIJ 13, Form FUNJ 13).

Also, in order to simplify the reporting by the taxpayers of the tax liabilities related to certain

road charges, the form for the tax return and for the information on charges for using public roads

and/or road shoulders beyond inhabited areas, approved by MSTI Order No 521 of 23 June 2015,

published in the Official Gazette No 166-176/1176 of 03 July 2015, which replaces 3 forms.

To streamline the administration of duties for the issuance of international road transport

permits, ECMT multilateral road haulage permits, TIR carnets for ECMT multilateral road haulage

permits, roadmap books (Interbus) – a standard form of information called the Form IATRI 15 was

developed and approved by MSTI Order No 956 of 30 October 2015, and published in the Official

Gazette 302-305/2220 din 06 November 2015.

Also, to simplify the visualisation of the information related to the shares of local taxes and

duties, a mechanism providing for the publication of local public administration authorities’ decisions

establishing precise shares of local taxes and duties was developed by the territorial STIs and posted

on the STS official website, after they were received from local public administration authorities.

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The “Decisions on the shares of local taxes and duties” Module can be accessed by the taxpayers

in the menu option “Public Information”, sub-menu option “Decisions on the shares of local taxes and

duties” starting with 2016.

To improve the quality of the consultation services provided by the Single Call Center – the

system of “Statistical Reports and Call Monitoring” was implemented in CRMIS, which allows to

identify quality indices, such as the share of missed calls, average length of a call, structure of calls per

types of taxes, which will be taken as a basis for the setting of performance objectives. The electronic

survey assessing the extent of satisfaction taxpayers have about the tax authority, provided services

was developed and put up on the official STS website www.fisc.md. This is a survey that any taxpayer

can participate in.

Another important methodological assistance tool meant for the taxpayers is the “Generalised

Basis of the Tax Law”, placed in the official STS website www.fisc.md, created following the

examination of the incoming taxpayers’ requests with regards to the fiscal situations that emerged as a

result of the amendments made to the law. The most important feature of this tool is that it gives one

the possibility to access online all the information about all taxes and duties administered by the STS.

During the reporting period, the Generalised Basis of the Tax Law was added 272 questions/answers.

The “2016-2018 Taxpayer Service Strategy” was developed an approved by MSTI Order No

1125 of 11 December 2015 in order to ensure the provision of quality services to taxpayers and to

improve the way they are attended to. The vision of this policy document of major importance,

inspired form the best European practices is to create a “society wherein the relationship between the

State Tax Service and the taxpayer is focused on the observance of mutual commitments.” The goal of

this policy document is to upgrade tax administration in order to provide quality services to taxpayers

by paying attention to their needs first.

The “Taxpayer Service Handbook” – another policy and conduct document – was approved by

MSTI Order No 41 of 24 January 2015. The main innovation in terms of conduct was to establish a

relationship based on equality between the taxpayer and the tax authorities.

To align the regulatory acts in the field of tax administration to the provisions of laws an

regulations in force, MSTI Orders were issued:

- No 129 of 24 February 2015 “Approving the Methodological Instructions for the Conduct of Tax

Visits” (Official Gazette No 139-143 of 05 June 2015);

- No 131 of 24 February 2015 “On the Organization of the Activity of the Tax Officer in the Field of

Tax Administration”;

- No 206 of 03 March 2015, for the organization of the activity of the tax officer in the field of tax

administration – the forms needed for this activity were developed and implemented;

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- No 404 of 14 May 2015 “Approving the Regulation on the files with the results of the controls

conducted by the State Tax Service and the procedure regulating their sending to the prosecutor or to

the criminal prosecution body”;

- No 409 of 18 May 2015 “Approving the Regulation on Tax Posts” (Official Gazette No 241-246 of

28 August 2015);

- No 396 of 6 May 2015 “Approving the Regulation on Moral (Non-financial) Stimulation of Honest

Taxpayers” (Official Gazette No 150-159 of 19 June 2015);

- No 393 of the MSTI, of the State Labour Inspectorate No 12, of the General Police Inspectorate No

82, and of the National Confederation of Trade Unions of Moldova No 150 of 5 May 2015 approving

the Joint Regulation on the Activity of Multi-disciplinary Teams, whose aim is to take measures

against informal employment and under-the-table-salaries.

V. ELECTRONIC TAX SERVICES: EASY, QUICKLY, ACCESSIBLE.

Electronic services are of a special importance in streamlining tax administration, as well as

in reducing the costs incurred by businesses. The desideratum to develop and launch different

electronic services was a priority in 2015 as well. Thus, along the year, a set of automated

information services were launched and upgraded.

“e-Application” AIS

The “e-Application” electronic service represents an IT solution meant to replace the traditional

application filing procedure (for registration as VAT payer and/or registration of subdivisions) through

a modern mechanism, based in information technologies.

Thus, the “Online Management of VAT Payers” Module

allows taxpayers to submit online the application on

registration/deregistration of VAT payers, as well as to view

the certificate issued by the taxation authority. These operations

can be performed directly from one’s personal computer as

long as it has internet connection.

With regards to the “Online Subdivision Management” Module, its implementation allows

taxpayers to submit (register) online the applications on the registration, suspension, resumption of

work and on shutting down subdivisions, with the opportunity for these to be granted online as well.

“Message Dissemination” AIS

The “Message Dissemination” electronic service is a new way of communication at distance

through electronic means that ensures quick delivery of, full, and correct information to the taxpayers.

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The “Message Dissemination” service contains messages meant for the taxpayers, for both

individuals and legal entities. It is meant to ensure a better information

of taxpayers, as well as to create new messages according to

taxpayers’ needs.

As it is meant for individuals and legal entities equally, the “Message

Dissemination” service will contain notifications on upcoming

deadlines for the payment of tax liabilities, newsletters about the

activity of the State Tax Service, the tax calendar that includes

information about the deadlines for the submission of tax returns and

for payment of tax liabilities to the budget, by taxpayer categories, with references to the legal

framework; notifications about the need to submit the income tax return for a particular tax period etc.

“Online Anteroom” AIS

The “Online Anteroom” is a new tool of the STS Communication Strategy, which – thorough a

better capitalization on the potential of information

technologies – allows to make communication between

taxpayers and the management of STS better by giving

the possibility to individuals and legal entities to talk

online with STS representatives about different topics of

mutual interest.

The “Pre-filled Return” represents a tool and a

solution to streamline the submission of returns to the STS by the individuals. The service modernizes

the filling in of returns both in online regime – provides the individuals with a user-friendly interface

meant to reduce the amount of time spent for the filling in and submission of the income tax return –

and on paper, as the return is generated on the basis of the data existing in the information system of

the State Tax Service. In 2015, besides the pre-filled return available to those who had electronic keys,

the possibility to generate it in territorial tax offices was also made available, which also involved their

modification upon at the request of the taxpayer.

To make attending to taxpayers easier, in 2015, a List of services provided by the STS,

including the electronic ones, was uploaded in the official website www.fisc.md, where the

taxpayers could learn about the services provided by the STS and what they were about. To be see the

list of services, go to:

http://www.fisc.md/taxservices.aspx

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Providing services to taxpayers, the STS continued to develop and improve tax administration,

managing to create and place, in this manner, on its official website an electronic survey that any

person can participate in by going to:

http://www.fisc.md/opinionpoll.aspx

Upgrading the Tax IT system – Efficient Support for the STS and the Taxpayers

In 2015, special attention was paid to the improvement of the IT tax system, which allowed to

increase functionality and gave the possibility to use data in order to increase revenues to the budget.

To improve the “Tax Information Flow Management” Sub-system, the following was carried

out:

- CAEM Rev. 2 was implemented and the related sub-systems from the STSIS were adjusted

- The CUIL function was implemented

- The application used to crosscheck the information about the subdivisions of business operators

from the database of territorial STIs and central database of the STS was developed and implemented

on the “FoxPro” platform

- The form called “TFZD 15 – Return on the on charges for using public roads and/or road

shoulders beyond inhabited areas” was developed and implemented in STSIS sub-systems

- The form called “ITFZD 15 – Information on the on charges for using public roads and/or road

shoulders beyond inhabited areas” was developed and implemented in STSIS sub-systems

- The application used to crosscheck the information about the subdivisions of business operators

from the database of territorial STIs and central database of the STS was developed and implemented

on the “FoxPro” platform, second stage (confirmed by the delivery certificate No 22/15 of 18

December 2015).

To upgrade the “Treasury Information Management” Sub-system (TREZOR), the following was

carried out:

- The Report called “VAT amounts refunded per business operators, type of deliveries and total

per STI” was developed and implemented;

- The function “Add criterion on the selection of information regarding revenues accrued to the

NPB with/without breakdown per taxpayers managed by LTO (VENITBPN application)” was

implemented;

- Version 9.4 of the “TREZOR” application, named “Manual filling-in of the fields “Payer’s

Bank Account” and “Paying Provider” from the “Certificate confirming money refund” regime” was

developed and implemented

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- Version 9.4.1 of the “TREZOR” application, named “Adjusting the structure and manner of

filling-in the field “Office” from the “Certificate confirming money refund” regime” was developed

and implemented

At the same time, certain adjustments were performed on the application “Tax Register”

CODFISC in FoxPro.

To upgrade the “Electronic Processing of Tax Documents” Sub-system, the following was

carried out:

- CRDA Form was developed and implemented;

- The CIR Form for invoices was adjusted;

- The TDSA 14 Form was developed and implemented;

- The unified return Form UNIF14 was developed and implemented;

- The Form TRN15 was developed and implemented;

- The Form BIJ15 was developed and implemented;

- The Form AR15 – the Form AR12 was changed into the Form AR15 at the level of the database;

FormBuilder, authorised logging were developed and implemented;

- The Form CNOTAREX15 – accrual of income tax of persons working as notaries or bailiffs in

STSIS systems – was developed and implemented;

- The Form TBDSA15 Form was developed and implemented;

- The Form TFZD15 was developed and implemented;

- The Form ITFZD15 was developed and implemented.

To upgrade the “Individuals’ Electronic Return” Sub-system, the following was carried out:

The “Pre-filled Return” from Electronic Return AIS was developed and implemented

To upgrade the “Fiscal Cadastre” Sub-system, the following was carried out:

- The application “Payment in advance of property tax by means of the MPay service” was

developed and implemented

To upgrade he “Collection of Information from Indirect Sources” Sub-system, the following

was carried out:

- Upgrading of the CIIS Sub-system by adding the role of “bailiff”;

- The MSign services was built in

To upgrade the “Order Standard Forms Online” Sub-system, the following was carried out:

- The Form “Milk Purchase Tally Sheet” was developed and implemented in “Record-keeping of

Standard Forms” AIS and in “Order Standard Form Online”

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- “Order Standard Form Online” AIS was adjusted

- “Order Standard Form Online” AIS was adjusted by adding the function to order the range of

fiscal invoices.

To upgrade the “e-Invoice” Sub-system, the design of the authentication module was upgraded;

the system-based notification of taxpayers was tested; the regression testing of “e-Invoice” AIS after

updates was conducted: adjustment of users’ accounts where other enterprise is reflected and

adjustment of the printing version of the fiscal invoice/invoice sent by “Ciclul mic” (“Short cycle”)

buyer’s interface; the regression testing of the signing and uploading of XML files process in “e-

Invoice” AIS on MCloud was conducted.

The www.fisc.md was updated in order to ensure transparency and accessibility as it is provided

for in the Government Decision No 188 of 3 April 2012 on the Official Websites of Public

Administration Authorities:

- The Form CET08 was adjusted to the quotas in force for “Electronic Return” AIS, as well as the

Excel file on www.servicii.fisc.md;

- A new page – “Report on proposals for legislation” in the “Writing the Tax Code” Module was

developed and implemented;

- The “STS Coat of Arms” compartment was developed and implemented on www.fisc.md;

- “Taxpayer’s Computer” was developed and implemented, which will allow for the accrual of tax

liabilities related to the income tax;

- The technical task was developed for the implementation of the “Judgements of Courts of Law” on

www.fisc.md;

- The banner informing about the upcoming deadlines for the submission of the income tax return was

developed and uploaded on www.fisc.md;

- The “Decisions of the MSTI’s Advisory Board” sub-option was developed and implemented on

www.fisc.md;

-The “Public Access to Taxpayers’ Arrears” Module was developed, implemented and placed on

www.fisc.md;

- The electronic survey was developed and conducted in order to assess the extent to which taxpayers

are satisfied;

- News are posted on www.fisc.md;

- The “Territorial STI” sub-page in the “Contacts” page underwent adjustments on www.fisc.md;

- The “Car Tax Calculator” was developed and implemented;

- The “Decisions on Shares of Local Taxes” page was developed and implemented;

- The “Tax Services” page was developed and implemented on www.fisc.md;

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Besides a set of upgraded systems as shown above, the list not being exhaustive, however, a set

of IT sub-systems were upgraded: “e-Application”, “Message Dissemination”, “Online Audience”,

“CRIS Registru”, “Taxpayer’s Electronic File”:

- The “Registration of persons carrying out licensed activities and of other categories of taxpayers”

Module

- The “Application for Deregistration as VAT Payer” Module

- The “Application for Excise Certificate” Module

- The “Application for Deregistration as Subject to Excise Taxation and for Withdrawal of the Exise

Certificate” Module

- The “VAT Refund” Module

- The “Online Subdivision Registration” IT sub-system was developed and implemented

- The “Online VAT Payer Registration” IT sub-system was developed and implemented

- The Forms “Application for Registration as VAT Payers” and the “Certificate of Registration as

VAT-Taxable Entity” were adjusted

- other

Work has started on a number of IT sub-systems. Thus, for 2016, we intend to develop and

implement the “Tax Control” SMC, “Taxpayer’s Electronic File”, “Single Account” etc

VI. FIGHTING TAX EVASION

Tax evasion is the element that undermines the economy of a state. Tax evasion is about hiding

certain revenues - either in full or in part – so as not to pay taxes and duties owed to the National

Public Budget and the budgets of territorial-administrative units by individuals and legal entities.

These actions or inactions take place in different ways, either by legally bypassing the tax law, or by

intentionally avoiding to pay tax liabilities, which happens by direct violation of a particular tax rule,

but also by intentionally avoiding or bypassing it by means of mock legal documents that seem real at

first sight.

By their nature, tax evasions have a negative impact from economic, social and political

standpoints, and they affect the amount of revenues that go to the State Budget.

Tax evasions also happen when entrepreneurial activity is carried out illegally, meaning:

- carrying out economic activity without being legally registered;

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- those legally registered avoiding to submit the documents and data that attest the tax

liabilities to the budget;

- hiding real revenues in order to avoid taxation by those legally registered;

- not paying the already accrued taxes.

During 2015, elements of tax infringements were found and thus, the law enforcement bodies

were notified thereon, 438 materials being sent by the tax authorities on the matter, the amount of

evasion being of MDL 3,083 million. The law enforcement bodies, in their turn, started criminal

prosecution in 128 cases, whereas in 24 cases they issued orders of refusal against starting criminal

prosecution.

The issue of tax authorities and law enforcement bodies with regards to the enforcement of the

legal framework must be looked at from two general perspectives:

- correct and consistent enforcement of the current legislation, under all aspects;

- amendment of the legislation, being inspired from the legislation and judicial practice in

other states, in the first place, of those states that have common principles and concepts.

There are many international methods to fight and prevent tax evasion that we can follow. Most

of the times, tax evasions take place at international level, when by complex transactions, the money

gained out of evasions are transferred beyond the borders of the host country. An important role in

stopping them is the exchange of information between states and the taxation of unreported amounts. It

was proposed, to this end, to create an information exchange mechanism.

According to this proposal, corroborated by the regulatory provisions regarding automated

exchange of information – the EU member states, for instance, will exchange among them as much

information as they committed to exchange with the USA under the American Foreign Account Tax

Compliance Act – FATCA.

The FATCA Agreement

The Republic of Moldova also signed the FATCA Agreement with the USA on 26 November 2015,

and by the Government Decision No 765 of 28 October 2015 Approving the Draft Law on the Ratification

of the Cooperation Agreement between the Government of Moldova and the Government of the United

States of America to facilitate the implementation of the American Foreign Account Tax Compliance Act

(FATCA), signed in Chisinau on 26 November 2014, the Agreement was forwarded to the Parliament for

ratification.

The Intergovernmental Agreement FATCA, signed by the Republic of Moldova and USA,

provides that the financial institutions from the banking and non-baking field, that fall under the scope of

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FATCA, shall report to the US Tax Service data about the financial accounts owned by American

taxpayers or by foreign entities whose shareholders are mostly American taxpayers. The purpose of this

agreement is to fight tax frauds admitted by US subjects together with Moldovan STS.

VII. MODERNIZING STS – PRIORITY OF THE YEAR

2016-2020 STS Development Strategy

The State Tax Service was and is seeking new solutions to make the tax authority more efficient

and modern, thus helping to reduce the costs for taxpayers to fulfill their tax liabilities and also lead to

increased voluntary compliance in paying taxes and duties to the national public budget. All the tasks

and ambitions are about improving tax administration in order to reduce the tax gap, increase revenues

to the National Public Budget, increase the level of tax compliance, ensure an efficient tax service for

the taxpayers.

Thus, acknowledging the need to make changes – the 2016-2020 STS Development Strategy was

developed, which is based on the fundamental review of tax processes and procedures in order to

strengthen skills in dealing with taxpayers, contribute to a greater voluntary compliance and

maximization of budget revenue. In this context, STS established the following development priorities

in order to improve tax administration skills:

The impact of the Strategy will be felt in the upcoming period of time. Thus, the increased

efficiency of tax administration and the increase of revenues to the budget, ensured by an unified STS,

of the elimination of inappropriate activities and of institutional reorganization, with a focus on

specialization per functional fields will become visible. At the same time, there won’t be as many

damages to the budget because of tax frauds, as tax evasion schemes will be found and combated.

Through the implementation of the integrated information system, the costs of tax administration will

decrease and the quality of services provided to taxpayers will increase. At the same time, through the

improvement and automation of operational processes, the negative impact of staff turnover will fall

away.

I. Implement the institutional reform

II. Implement the operational reform

III. Controbute to the European integration

IV. Upgrade the IT technologies

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Thus, the attainment of the general objectives set in the Strategy will contribute to collecting

more revenues to the budget, an increase in the efficiency of tax administration, an increase in the

quality of services provided to taxpayers, greater voluntary compliance by the taxpayers and reduction

of the tax gap.

International Assistance

One of the important events of 2015 was the preparations started for an important STS

development project, in collaboration with the World Bank (WB) – the Tax Administration

Modernization Project (TAMP), which shall practically cover all field of tax administration.

The drafting of the project started on the account of the Grant TF017415 awarded by WB, which

shall ensure:

- mapping business processes from the STS;

- strengthening of project management and change management skills

- description of requirements for the integrated information system.

The Swedish Tax Agency is still the loyal development partner of STS.

Thus, the second successful institutional collaboration year came to an end, and the

project results are noticeable both to STS, the development partners and to the

taxpayers. This is confirmed by the results of a recent survey, according to which

about 76% of the taxpayers who participated in the survey are satisfied with the

provided services, which as hopeful result. A survey conducted in September 2015 proved that the

taxpayers are, generally, happy with the performance of the tax authority. The sociological survey was

conducted under the leadership of the Swedish Tax Agency – Ylva Vesterlund. The taxpayers were

asked what they thought about the tax authority and the tax system from the Republic of Moldova. The

survey covered all the country. I was conducted among different groups of taxpayers, legal entities and

individuals, big, medium and small companies being invited to participate in the interviews as well.

The respondents were asked to score the tax from 1 to 10 (10 being the maximum score), and the

TAM

P

Tax policy and analysis;

Institutional development;

Operational development;

IT infrastructure and system modernisation;

Project management and change management.

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average score was an 8, which is believed to be a high score. The respondents provided the following

reasons for the scores they gave: the tax authority invests all efforts in order to improve the state of

affairs, but the problem lies with the tax system; the tax authority registered significant progress over

the past years, it tries to be friendly and helpful; those taxpayers who needed help – got it; there are

many good tax officers that are very thorough with their job duties, and during tax inspections they

show a nice behaviour etc.

27 missions and 3 study visits were organised during the year, within which topics related to the

tax law and audit (control) were addressed.

The collaboration with international organizations was strengthened over the

year by a mission of the International Monetary Fund, within which the STS

accomplishments in this year were presented, and also, recommendations were

made for the improvement of tax administration.

Under the USAID/BRITE Project, actions aimed at strengthening

relations with taxpayers were taken in the form of awareness raising campaigns

about the change of the deadline until which income tax returns are to be filed, as

well as about new functions. In 2015, 4 new functions were introduced in

Taxpayer’s Account AIS, with the support of USAID/BRITE, and particularly:

Record-keeping of tax liabilities per locality;

The tool used to develop ad-hoc reports on the basis of the pre-formed datasets, having various

data filtering and grouping possibilities;

The additional report regarding the identification of the late payment penalty for more periods;

Register of certificates confirming the lack or existence of debts to the budget.

Concurrently, a number of working meetings took place during the year, in which representatives

of the MoF also participated, with a view of implementing the Singe Account. As a result of the last

meetings, the MoF accepted the implementation if the Single Account in 2016, and MSTI approved

the Terms of Reference regarding the development of the Module generating invoices within the

Taxpayer’s Current Account AIS.

In June 2015, the EU High Level Policy Advice Mission came to its end. Peter Menhard – counselor

to the Head of the MSTI all through the mission – provided support and advice of

strategic importance, and namely – support in drafting the 2016-2020 STS

Development Strategy, and assistance in developing documents according to the

WB requirements under the TAMP.

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During 2015, the collaboration with the Tax and Duties Ministry of the Republic of Belarus

started, and the possibility to sign collaboration agreements with the Ministry Of Taxes Of The

Republic Of Azerbaijan and with Romania's National Tax Administration Agency appeared.

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The IOTA Forum

From 3 to 5 June 2015, STS hosted the IOTA Forum ( Intra-European

Organization of Tax Administrations), focused on the administration of large

taxpayers. The Forum took

place in “Summit Events”

Conference Centre, and was

attended by more than 50

delegates representing tax administrations from as

many as 25 countries.

The IOTA Forum, focused on the

administration of large taxpayers, represents a

productive and useful stage for the representatives of

all tax administrations, whereas the great attendance at the Forum proves not only the great interest

there is, but also the determination to work together to efficiently exchange experience, learn from best

practices and strengthen relationships between tax administrations.

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The State Tax Service – 25 Years of Activity

On 1 July 2015, STS turned 25 years since it was established. On this occasion, the assembly

room of the Palace of the Republic hosted a celebratory meeting that was attended by the employees of

the STS, former employees

who retired already,

representatives of the

Government, Members of

Parliament, guests from tax

administrations from abroad,

representatives of

development partners and of

the business environment.

Brought together at the

celebratory meeting, the

invitees celebrated the 25 years of activity, held speeches meant to highlight the role of the STS and its

efforts in the collection of revenues to the National Public Budget and in ensuring the economic

security of the country.

“I would like to extent sincere congratulations on this beautiful anniversary.

People start maturing after 25 years of age. The objective of the STS, which

reached the age of maturity, is to restore citizens’ and taxpayers’ trust in

financial institutions, and in public institutions in general!”

Swedish Tax Agency Expert, Carina Silbo

The Deputy President of Romania's National Tax Administration Agency – Romeo Florian

Nicolae – attended the event and held a speech, and so did the representative of the tax authority form

Azerbaijan – Elchin Mammadov – Head of the Taxpayer Service Division General (Ministry Of Taxes

Of The Republic Of Azerbaijan). It is worth mentioning that the State Tax Service established good

collaboration relations with homologous institutions from Romania, Azerbaijan, which expressed their

readiness to help the State Tax Service of the Republic of Moldova in implementing the reforms

provided for in the European Union Association Agreement.

Also, the employees of the tax authority were congratulated by the representatives of the

business environment, by the Director of Orange Moldova – Ludmila Climoc, who gave her best

regards and wished them success, and said she believed that the STS European modernization reforms

will contribute to the creation of relationships based on respect and trust between the tax authority and

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the taxpayers. Before the event ended, the best tax officers were awarded Certificates of Honour by

the Government and the Ministry of Finance, as well as bonuses.

The acting Prime Minister – Natalia Gherman,

congratulated the employees of the STS on the 25th

anniversary of the institution, thanked them for the

efforts they invest in managing a very important

public sector.

“A well-organized and efficiently administered

tax system is an indispensable precondition that has

to be fulfilled in order for the national economy to

come in line with European standards” – said the

Acting Prime Minister.

Natalia Gherman also encouraged the

employees of the tax authority to implement advanced

and modern policies following the model from

European countries, so as for the State Tax Service to

be regarded as a taxpayer-friendly institution,

providing a wide range of electronic services, which

will also contribute to the development of the

Republic of Moldova.

“I am sure that together we will manage to

ensure the economic recovery of the Republic of

Moldova, a financial balance in the society, a

trustworthy investment climate, economic

development, and we’ll manage to invest in the

future of this country for a better livelihood and

in order to ensure citizens’ well-being and

feeling of stability, just as we are supposed to

according to our ambitious plan to join the

European Union”

Head of MSTI, Ion Prisacaru