Patent system, financial reporting of budgetary organizations in the spotlight

Meeting of the Committee on Economic Policy was held. The parliamentarians discussed amendments and additions to the Code of Administrative Offenses, to the Law of the PMR “On Domestic Trade”, to the Law “On the Procedure for Conducting Inspections in the Implementation of State Control (Supervision)”, as well as clarifications to the law on the patent taxation system.

The law-in-draft, which provides for the introduction of some changes to the Code of Administrative Offenses, was presented at the meeting of the Committee by the Deputy Minister of Finance of the PMR. The Minister noted that the law-in-draft was developed in order to eliminate the legal gap and fix at the legislative level a norm providing for the introduction of administrative responsibility of budgetary bodies (organizations for late submission, failure to provide or provision of financial statements in an unspecified form. The responsibility of budgetary organizations in the Code of Administrative Offenses is not regulated ", the representative of the Ministry of Finance noted. As noted at the meeting of the Committee on Economic Policy, reliable information on the state of public finances is of particular importance for making informed management decisions. By decision of the Committee, the law-in-draft will be submitted for adoption in the first reading at one of the next plenary meetings. Work on the document will continue taking into account the comments made.

Another legislative initiative has been prepared for consideration in the Supreme Council by the Chairman of the relevant Committee Viktor Guzun. We are talking about amendments and additions to the law "Special Tax Regime – Patent System of Taxation". The parliamentarian proposes to make an addition to the law, which will clearly stipulate that the subjects of the patent taxation system are not entitled to carry out other types of entrepreneurial activities that are not established by the appendix to this law.

The Committee supported the initiative of Deputy Guzun. The law-in-draft  will be submitted to the plenary session for consideration.

Amendments and additions to the law "On the procedure for conducting inspections in the exercise of state control (supervision)" were submitted by the Government.

The Government added that this norm in the future can be moved to the Budget Code and determine the entire mechanism, which will now be regulated by two legal acts.

Deputy Vadim Kravchuk was interested in whether such control is carried out today at the stage of acceptance of reports. The representative of the Ministry of Finance noted however that such control cannot be formalized in the form of an act and any form of responsibility for revealed violations cannot be applied. The reports are returned for revision, but the procedure for conducting this audit in relation to the financial statements of budgetary organizations is not defined. It is fixed only in relation to tax reporting.

The deputies of the Committee on Economic Policy, Budget and Finance agreed that such an initiative is necessary and submitted it to the plenary session in the first reading.