The government has just passed a new law to establish two institutions that aim to improve the relations between the government and taxpayers.
Albania’s tax system will soon have two new structures – the Taxpayers’ Advocate and the Taxpayers’ Consultative Council – that aim to improve the relationship between the tax payers and the tax administration.
The country’s tax administration is often seen with suspicion by business and individual taxpayers, and the government has just passed a new law to have additional structures to help the situation.
The law was discussed in the parliament’s powerful Economy Commission this week, and is soon expected to be approved by the parliament at large.
“Often businesses have suffered from abuse by the tax administration, which has issued instructions without proper interpretation to the taxpayer. As of today, they will be protected, they will be part of the table where these procedures and practices can be discussed,” Commission Member Florion Mima, a Democratic Party member of parliament, said during the meeting.
The Directorate of Taxpayers’ Advocate has the primary function of providing information in an efficient and relevant matter to different administrative levels based on the problems faced by taxpayers, in paying their taxes and following relevant administrative procedures to guarantee of the right of the taxpayers by the tax administration.
“Creating the structure of the Directorate of the Taxpayers’ Advocate will serve as a framework for efficient tracking of information and for handling all the issues taxpayers face in their dealings with the administration – things like unreasonable delays, wrong solutions, etc.,” Arjana Dyrmishi, director of fiscal policy in the Ministry of Finance, told the members of the commission. “The new structure will deal with these concerns and issues facing the taxpayer and will offer the right solution within the tax structures.”
The Taxpayers’ Consultative Council will work in the Finance Ministry and will be dominated by business community representatives. It will deal with aspects of the implementation of fiscal laws. It will also directly cover issues business faces in the implementation of tax procedures. It is likely going to be of great assistance to improve the business-tax administration relations.
“The aim with creating the council is to creating a structure in the Ministry of Finance that will serve as a bridge between the institution, the General Department of Taxation and the business community where problems can be discussed,” Dyrmishi added.
The establishment of these two institutions has been subject to extensive discussion with business community and citizens at large, and Prime Minister Sali Berisha said extensive consultations with interest groups and communities are a permanent condition for all initiatives and decisions of government.
“No law and no decision that affects a certain group or a particular part of the community can come to the Council of Ministers without first consulting with them. This must be our rule. We seek council from them. Of course, we can’t commit to reflecting every opinion and wish, but we will try, of course, to hear more and find a more appropriate outcome for interests groups,” Berisha recently said.
In addition, the fact that the representatives of taxpayers will be part of this council reinforces the idea that it will be in service of improving the business climate in the country and will be able to repair some of the most pressing problems business face today.
According to the draft law, the Taxpayers’ Advocate is authorized to investigate all requests by taxpayers that are related to the tax administration, things like unreasonable administrative delays, errors of tax officials that are not resolved in the right manner after the claim submission by the taxpayer as well as disregard or violation of tax procedures by tax officials.
While the Consultative Tax Council is a forum for technical advice and cooperation between the Ministry of Finance, the Tax General Directorate and taxpayers.
The council is aimed at discussing problems and proposing measures that would make possible the implementation of tax legislation with lower administrative costs for the tax administration and a lower financial cost to taxpayers.
