Harmonization of Fiscal Control Mechanisms of the Republic of Moldova with European Standards – Development Directions and Challenges

Abstract

This study examines the process of harmonizing the fiscal control mechanisms in the Republic of Moldova with European standards, focusing on the main development directions and the challenges that continue to influence this path. The research starts from the premise that effective approximation to the European principles of fiscal administration cannot be reduced to simple regulatory compatibility, but implies measurable progress in the organization, efficiency and quality of fiscal control practices. The purpose of the study is to assess the degree of convergence between the national fiscal control framework and the relevant European requirements, as well as to identify institutional and procedural areas that require further adjustments. The research is empirical and analytical in nature and is based on the examination of official sources of a normative, institutional and statistical nature. In this regard, data from public reports and administrative sources on tax control activity are used, including the dynamics of tax controls, the evolution of additionally calculated tax obligations, the role of risk-based selection, as well as the general trends in the modernization and digitalization of tax administration. These data are interpreted through comparative, logical and synthesis methods, in correlation with the fundamental European principles of proportionality, transparency, legal certainty, risk orientation and protection of taxpayer rights. The research results reveal that the Republic of Moldova has made visible progress in modernizing fiscal control mechanisms, in particular by improving procedures, gradual digitalization and expanding analytical tools in fiscal administration. At the same time, the empirical assessment highlights the persistence of structural constraints, such as the uneven application of control practices, limited institutional interoperability, insufficient depth of analysis when selecting controls and the still incomplete nature of the transition from a predominantly reactive model to a preventive and compliance-oriented one. In conclusion, the harmonization of fiscal control with European standards must be treated as a process of substantial institutional transformation, supported by data-driven administration, procedural standardization and strengthening the balance between the fiscal authority and the taxpayer's rights. UDC: 336.225.673(478):061.1EU; JEL: H20, H26, H83, K34