In the first two years of implementation of the percentage designation mechanism, there has been noted mainly the massive presence of organizations involved in the social area. At the same time, analysing the list of beneficiaries with the largest amounts, it was found that some employers, among them state authorities or commercial companies, with a large number of potential employees, have managed to convince their employees to direct the amounts from percentage designation to NGOs affiliated to them. The conclusions can be found in a report of the Legal Resources Centre, made two years after the implementation of the 2% mechanism in the Republic of Moldova, IPN reports.
According to the study, in the first two years among the greatest beneficiaries of the mechanism there have been organizations that are not very visible and known in the associative sector. According to the authors, this can seriously affect the sustainability of the percentage designation mechanism. Or the massive presence on the lists of affiliated organizations that carry out activities in the corporate interest of the members of union or political platform, may discourage taxpayers to support the activity of civil society organizations. At the same time, this affects the credibility of civil society organizations and the 2% mechanism.
The report also indicates that in 2018, some categories of taxpayers were still deprived of the percentage designation right, among them taxpayers who practice professional activities - lawyers, notaries, court executors, mediators, as well as those who practice entrepreneurial activity, although limitations in the law have been generally excluded.
During the past year, the taxpayers had different experiences related to the designation procedure. While some found the designation procedure to be simple, others encountered difficulties. Some interviewees pointed to certain irregularities which they encountered in the designation process, in particular: the intention of tax inspectors or employers to influence taxpayers to redirect some of the income tax to a particular organization.
The authors of the report recommend organizing 2% mechanism awareness and promotion campaigns at both national and local levels by beneficiary organizations and by authorities. Another recommendation is for the State Fiscal Service to train its employees to inform individual taxpayers about the possibility of directing a percentage to an organization from the List of 2% beneficiaries as well as to ensure the free consent of the taxpayer and the confidentiality of the designation.
