The Efficiency of the Tax Administration of Large Taxpayers from the Republic of Moldova through the Prism of the Activity of the State Tax Service

Abstract

Large taxpayers represent a notorious segment of economic agents who, emerging from the activities carried out, the turnover and respectively the taxes and duties paid, contribute essentially to the formation of budget revenues. Large taxpayers are the economic agents who are also socially important by creating jobs and supporting the national economy by honoring tax obligations in full and on time.[11] In this sense, the voluntary compliance of large taxpayers is a priority for the tax authority, a fact that leads to the registration of a low percentage of taxpayers in arrears, regarding which the application of the tools and procedures for collecting arrears is ensured. [8] The State Tax Service (STS) approves every year the List of large taxpayers from the Republic of Moldova. For the year 2023-2024, this list includes 550 economic agents, entities and individuals, who practice entrepreneurial activity in the Republic of Moldova and this list is public, being approved by order of the STS, and later published in the Official Gazette. It includes the largest companies in the country, all banks and insurance companies, but also taxpayers who hold a dominant position and/or significant importance in a field of the national economy. [1] The criteria for selecting large taxpayers are approved according to the annex to the Order regarding the establishment of the criteria for determining and selecting large taxpayers. Establishing the criteria for selecting large taxpayers and approving their list is the responsibility of the State Tax Service according to article 133, paragraph 35 of the Tax Code. The objective of the paper consists in reflecting the eligible criteria for selecting and including large taxpayers in the List of large taxpayers and examining the evolution of the number of large taxpayers in the Republic of Moldova. The author also aims to examine the compliance treatments applied to large taxpayers according to the risks identified in their activity. The conclusions express the contribution of the State Tax Service in the fiscal administration of economic agents - large taxpayers and respectively the efficiency of this administration by reflecting the contribution of large taxpayers to the National Public Budget by honoring tax obligations. CZU: 336.225.3(478); JEL: H24, H25, H27