Cabinet to present draft law on promoting economic transparency

Ulaanbaatar /MONTSAME/ The cabinet at its meeting on January 7 discussed a draft law on promoting the economic transparency and resolved to present it to parliament. The Ministers consider that this regulation will be the mechanism by which all hidden properties will be disclosed. It means that the entities will be given one chance to fix intentionally distorted/hidden information given in financial and taxation reports and income statements. As known, the state declared amnesty in 2007-2008 by freeing entities from some taxes and social insurance payment. This time, it offers one-time exemption from administrative fines in cases of false reporting of income statements, registrations, financial accounting reports, specifically in cases of failure to pay social insurances, register as legal entity or immovable property, reflect the properties in income declaration, of the commitments to reflect reduced value of properties in statements. The effective date for the voluntarily disclosing will be six months after the adoption of the law, no fines will be imposed. In regard to this, a draft law on tax amnesty will be presented next week to parliament. If adopted, the new amnesty will greatly help collect adequate quantitative data to determine the country’s economy.