Law on Supporting Economic Transparency comes into effect.
The law has been discussed through the recent special session of the State Great Khural and provisions the inclusion of the business entities in economic pardoning, revealing of the hidden assets and therefore waiving the legal responsibilities that might have imposed without the law.
The law provisions one time pardoning of the citizens and entities from the taxes evaded and legal responsibilities to those who voluntarily will report the hidden revenues or assets registered under another name both movable and immovable at the taxation, customs and other registration authorities. The implementation of this law is viewed differently as whether it will benefit the economy or not.
B.Lkhagvajav, President of the Mongolian Chamber of Trade and Commerce:
He sees the implementation of the law will benefit in cutting the corruption. According to him in 2008 after the approval of the Taxation Pardoning law the total sum of USD 4 billion was revealed, which in turn led to the increase of the revenues of pardoned entities by 3-5 times. Moreover, the attempt of opposing the currently approved pardoning law is the mere attempt of the monopolies to keep their place by restricting the new entrants to the market.
Implementation of the new law will benefit in introducing the new accounting sheets for over 95 thousand entities bringing the transparency to the market and cutting the corruption. Moreover, he sees that the law will help boost the economy as the hidden assets will emerge.
Kh.Batsuuri, Economist and Engineer /Editor of the Analyst economic magazine, worked at World Bank and Tetra Tech/
According to him, the implementation of the new law will have no significant benefit for the economy.
He further explains his stance with the lack of the proper analysis, facts and research of the previously implemented Taxation pardoning law back in 2008 and he also says that there are only few numbers, which cannot be reasoned at all. If the law have revealed the existence of the USD 4.5 billion, the economy should have expanded accordingly, because the amount was the same with the then GDP of the country. At that time the statistics showed the declined taxation revenues, while the taxation revenue in 2007 was at MNT 253 billion, the number dropped to MNT 205 billion in 2008.
Moreover, if an entity will be pardoned every seven years, it might have negative effects as well. This is most destructive to those entities, which were paying its taxes according to the current laws. It also creates the negative impacts ethics wise. It gives the wrong message for the businesses that tax evasion is an option.
Like above there are differing stances and views about the newly approved law on Supporting of the Economic Transparency. It will be only evident if the law carries good or bad impacts afterwards.
Important point here is the inclarity of the previous Taxation pardoning law implementation impacts on the economy. The only wish is to have clear and transparent reporting of the implementation.
Law on Supporting Economic Transparency comes into effect.
The law has been discussed through the recent special session of the State Great Khural and provisions the inclusion of the business entities in economic pardoning, revealing of the hidden assets and therefore waiving the legal responsibilities that might have imposed without the law.
The law provisions one time pardoning of the citizens and entities from the taxes evaded and legal responsibilities to those who voluntarily will report the hidden revenues or assets registered under another name both movable and immovable at the taxation, customs and other registration authorities. The implementation of this law is viewed differently as whether it will benefit the economy or not.
B.Lkhagvajav, President of the Mongolian Chamber of Trade and Commerce:
He sees the implementation of the law will benefit in cutting the corruption. According to him in 2008 after the approval of the Taxation Pardoning law the total sum of USD 4 billion was revealed, which in turn led to the increase of the revenues of pardoned entities by 3-5 times. Moreover, the attempt of opposing the currently approved pardoning law is the mere attempt of the monopolies to keep their place by restricting the new entrants to the market.
Implementation of the new law will benefit in introducing the new accounting sheets for over 95 thousand entities bringing the transparency to the market and cutting the corruption. Moreover, he sees that the law will help boost the economy as the hidden assets will emerge.
Kh.Batsuuri, Economist and Engineer /Editor of the Analyst economic magazine, worked at World Bank and Tetra Tech/
According to him, the implementation of the new law will have no significant benefit for the economy.
He further explains his stance with the lack of the proper analysis, facts and research of the previously implemented Taxation pardoning law back in 2008 and he also says that there are only few numbers, which cannot be reasoned at all. If the law have revealed the existence of the USD 4.5 billion, the economy should have expanded accordingly, because the amount was the same with the then GDP of the country. At that time the statistics showed the declined taxation revenues, while the taxation revenue in 2007 was at MNT 253 billion, the number dropped to MNT 205 billion in 2008.
Moreover, if an entity will be pardoned every seven years, it might have negative effects as well. This is most destructive to those entities, which were paying its taxes according to the current laws. It also creates the negative impacts ethics wise. It gives the wrong message for the businesses that tax evasion is an option.
Like above there are differing stances and views about the newly approved law on Supporting of the Economic Transparency. It will be only evident if the law carries good or bad impacts afterwards.
Important point here is the inclarity of the previous Taxation pardoning law implementation impacts on the economy. The only wish is to have clear and transparent reporting of the implementation.