Last Wednesday, 22 April, the Supreme Council deputies rejected by a majority the government's draft law «On some extra government measures aimed at minimising negative impact of economic factors.»
Among measures proposed by the government were regulations relating to funds transferred to offshore zones. These funds are not taxed at all, neither in Pridnestrovie nor in these zones.
As was reported by Maya Parnas, this scheme is plausible since the funds are transferred not as profits received by an enterprise resident of Pridnestrovie, but as non-commercial operation transfers, which may involve providing certain so-called advisory services or granting a tax-free loan to a resident of Pridnestrovie.
Thus, the funds are transferred from Pridnestrovie to offshore zones, but taxes are not paid to the budget because the funds are funnelled not as profits, but as a legal entity's expenses.
«These funds amount to several times aggregate annual profit of all Pridnestrovie's enterprises, which is why we proposed the mechanisms of imposing taxes on such non-commercial operations," said Maya Parnas, adding that the draft law rejected on its first reading was supposed to give equal rights to legal entities and individuals carrying out some non-commercial operations, which would provide for certain budget revenues at the expense of legal entities.
