The draft law on capital liberalization and tax stimulation was adopted by the MPs by a majority of votes in the first reading. This provides that the Moldovans will be able to liberalize the capitals maintained in the underground economy and those from outside the system, IPN reports.
One of the bill authors, Speaker of Parliament Andrian Candu said the bill does not provide for the institution of tax amnesty. The fines and penalties will be forgiven only if the business entities pay the main debt to the state budget. Over 105,000 taxpayers have debts of about 880 million lei to the state budget in the form of overdue fines and penalties. The main debt to the state totals 1.1 billion lei. Even if the state loses the 880 million lei, it will gain another 1.1 billion lei as the people will be stimulated to pay the main debts.
The Speaker noted it is estimated that the underground economy represents over 30% of the GDP in Moldova and mechanisms are needed to make this economy legal. The liberalization of capital is one of these mechanisms. If the people want to assess property at the market value and sell it, this law will enable them to do this by paying a tax of 2% of its value as liberalization tax.
A number of MPs expressed their concern about the fact that this bill could enable some of the private individuals to legalize unlawfully obtained capital or financial resources owned in offshore areas. Andrian Candu said the law does not envision the legalization of capital obtained by illegal means. Before the second reading, they will finalize the mechanism by which the origin of money will be checked.
Unaffiliated MP Iurie Leanca said there are fears that this law could have other effects than the expected ones. “It casts doubt on the integrity system as it can affect the reputation of the financial-banking system. Therefore, I suggest working out another conception that will separate tax stimulation from capital liberalization. There should be probably two bills,” he stated.
Communist MP Maria Postoico stated the people are concerned about this bill as those who break the law will be able to legalize their property and the state exempts them from debts. It’s not clear if the bill refers also to those who own property in offshore areas.
