The analysis of income tax payment in installments - an inconsiderate strategy imposing new pressures on fiscal consolidation of business environment

Abstract

This paper is a critical study of the prepayement of the corporate income tax. The mechanism of this measure is simple at the first sight and thought by those who serve the government but are paid taxpayers’ money: the tax is calculated quarterly based on the profit made in the previous year. Thus, the authors have examined the general tax burden on a company from the Republic of Moldova as compared with some developed countries such as Germany, France, United Kingdom etc. during 2010-2015, andhave highlighted the lack of vigor and inconsistency of the Fiscal Code through which the State recognizes its inability to create a friendly and comfortable business environment, where taxpayers would voluntarily pay the taxes. In this context the authors have analyzed the statistical data provided by the World Bank Group and Price Waterhouse Coopers.