Question of the day

In the tax inspection, in order to determine the correctness of the calculation of the amount of the tax liability, the authority carrying out the tax inspection may use indirect methods and sources, in accordance with the law. Indirect methods and sources for estimating tax liabilities are also used in tax administration as a result of the establishment of tax postures1.

If, during the tax inspection, the amounts of taxes and duties to be paid to the budget cannot be determined on the basis of lack of accounting or irregular retention, if the taxpayer (his or her representative) or the person responsible for him or her does not submit, in whole or in part, the accounting documents and/or statements of tax accounts, the State Tax Service shall calculate the taxes and duties using methods and from indirect sources, then recalculate them after re-establishing the records, in accordance with the legislation, or after submitting those documents. These actions may also be applied to natural persons who are citizens of the Republic of Moldova and who are not entrepreneurs using indirect estimation methods.

Indirect methods and sources include:

a) the type and nature of the taxpayer’s activities;

b) the size of the taxpayer’s capital;

c) the taxpayer’s income from sales, including income from tax items;

d) the number of employees of the taxpayer, as well as the labour remuneration fund and other rewards;

e) the category of the taxpayer’s clients and their number;

f) the difference between the quantitative and qualitative characteristics of the raw material, other clean materials and those used in production;

g) analysis of the change in the net value of the taxpayer’s property;

h) rent of the property used by the taxpayer for business purposes;

I) the running of the means and their balance on the taxpayer’s bank and/or payment accounts;

j) the comparison of the taxpayer’s expenses with his income;

K) the income of other persons working under the same or similar conditions as the taxpayer;

L) the property of the person in charge (home, car, etc.) procured or used for private purposes, his/her physical condition, his/her membership of different circles, the number of his/her domestic staff;

m) information from banks (branches or subsidiaries thereof), notarial offices, customs bodies, police bodies, the Public Services Agency, stock exchanges concerning transactions and operations carried out by the taxpayer and data relating to him;

M1) indicators of cost and expenditure meters;

m²) the regulatory capacity of the production/processing machinery;

N) other objectives, processes and phenomena, information and data indicating the sum of the tax liability of the taxpayer, as provided for in this Code.

Notes:

1Under Article 146 (1) of the Fiscal Code, the fiscal item is created by the State Tax Service for the purpose of preventing and detecting tax infringements, including cases of evading tax obligations, and for the purpose of exercising other tax administration powers.

Source: contabilsef.md