OREANDA-NEWS. August 14, 2012. The shadow companies caused losses of millions to the state budget, but the legislation in force does not favour combating the phenomenon, according to an audit report on the management of public incomes by the Fiscal Service in 2011, unveiled at a meeting of the Chamber of Auditors today.

Because of the lack of the legislative framework which would make possible "to sanction and condemn the shadow companies", the losses inflicted to the budget are on the rise, the head of department of the Chamber of Auditors, Tudor Suhan, said. He noted that the losses estimated by the fiscal bodies are up by 287 million lei in 2011 against 261.3 million lei the year before.

Since 2003, the list of shadow companies included 1,320 enterprises, under the report. In 2011, the fiscal bodies identified and included in this list 36 shadow firms, of which 25 were recorded earlier as tax payers. Nine out of ten shadow companies are from Chisinau.

Deputy Finance Minister Victor Barbaneagra said that the activity of the new enterprises will be monitored during one year, that will lead to decreasing the number of shadow companies.

There are shadow companies in Moldova with business worth hundreds of millions lei, which do not pay taxes. Prime Minister Vlad Filat said that this phenomenon has to be immediately brought to an end.

The new head of the State Fiscal Inspectorate, Nicolae Vicol, said after his appointment that one of the basic priorities of the fiscal service will be combating the shadow firms. He described its activity as "a crime against the nation".