As noted in the authors’ explanatory notes to the draft, the activities of the State Tax Service are currently fully regulated by the Tax Code. It sets forth the procedures for initiating, conducting, documenting, and appealing tax audits, as well as the rights and obligations of both parties.
The law applies to areas related to the protection of life, health, and the environment. Tax audits have their own specific characteristics. The registration of decisions on tax audits and their results in the relevant State Register is duplicated, which creates an additional administrative burden. Negative consequences of publishing the annual tax audit plan in the State Register of Audits are also noted.
The Ministry of Finance believes that this information reduces the preventive effect of audits, allowing companies to adjust their behavior and conceal violations. Furthermore, a company’s inclusion in the audit plan can damage its business reputation even before any violations are established.
Furthermore, Moldova’s Growth Plan for 2025–2027 provides for the creation of an automated tax compliance risk management system within the State Tax Service. In this context, developing a separate audit module for the State Tax Service is not appropriate.
