The process of collecting the taxes secured by the State Tax Service and the Customs Service and the local taxes at mayor’s offices was mainly influenced by the way in which the internal control systems at these bodies were organized. Even if the State Tax Service and the Customs Service created conditions for instituting and organizing internal control systems, the implementation process requires more perseverance and continuity. The lack of an efficient internal control system limited the operational functionality of the tax collection process, says an audit report that was presented by the Court of Auditors in a public meeting on May 14, IPN reports.

In general, the State Tax Service and the Customs Service fulfilled the tasks related to the collection of revenues into the national public budget, with the revenues rising from 38.6 billion lei in 2015 to 50.3 billion lei in 2017. But the process of implementing the internal control system witnessed particular vulnerabilities, namely in achieving particular performance indicators and in managing taxes and estimating budget revenues. In the case of particular taxes, the projected amounts could not be collected. The fiscal obligations to the national public budget weren’t fully fulfilled, with these increasing from 6.411,7 billion lei in 2015 to 11.216 billion lei in 2017.

As regards the monitoring of the process of voluntary compliance of taxpayers, extension of the taxable basis and counteracting of tax evasion, the State Tax Service has a program by which there are monitored 5,700 taxpayers. Even if the fiscal obligations calculated by these to the national public budget rose by 274 million lei to 1.932,6 billion lei, the evidence collected by the audit team shows a low level of voluntary compliance in fully calculating and paying taxes on time. The Customs Service does not have a voluntary compliance program.

The Court of Auditors concluded that the institutional management of the fiscal and customs bodies mainly ensured the achievement of the objectives and of results in the management of taxes in conditions of efficiency, efficacy and saving. But the insufficient organization and implementation of the internal control system influenced directly the achievement of the planned results, contributing to greater possibilities of tax evasion and to the formation of debts to the national public budget. The audited entities are to inform the Court of Auditors about the implementation of the recommendations within six months of their publication in the Official Gazette of the Republic of Moldova.