Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 16 ISSUE 1
Written by Igor ENICOV, Diana CRICLIVAIA

The economic system of socialist command economy admitted no possibility for tax evasion. Moreover, socialist types of enterprises, institutions and organizations not only had the opportunity but, more importantly, neither were interested in tax evasion. Nevertheless, in the mid of 80s, as a result of political and economic change, the individual and cooperative work, has been widespread all over. Since that time, the individuals and subsequently businesses were given the opportunity to generate an extra income, the attitude towards private property has changed, and as a result has led to tax evasion. Data shows a steady trend of increase in cases of tax evasion, thus in 1994 tax evasion correlation to GDP was 4.5%, in 1997 this number increased more than 3 times, in 1999 five times and in 2008 more than nine times. As result, the Moldovan anti-evasion and anti-avoidance legal and institutional framework suffered a lot of changes during its transformation for the last 25 years. However, the tax system, after 20 years of implementation, was still characterized by oversize, the austerity and the state's inability to manage efficiently its resources. Nevertheless, many steps were taken to change things in the last 5 years. With this paper we aim to examine the anti-evoidance and anti-evasion changes in order to reveal the weaknesses of Moldovan tax system and to understand its areas of strength.

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