TIRANA, Dec. 8 – Three months after the launch of a nationwide campaign against informality, the Albanian government has decided to reward tax evasion spies 5,000 lek (€36) for providing information on businesses engaged in tax evasion.
The reward has been determined in an ordinance by Finance Minister Shkelqim Cani after the Albanian government approved a 10 million lek (€71,000) fund in late October to reward external informants and allow infiltrated tax officials to purchase goods and services in order to check if businesses issue tax receipts.
The ordinance, which has already entered into force, envisages that informants can benefit the €36 reward only if introduce themselves to the tax administration and the information and evidence they provide is verified on the ground by special teams.
The decision comes at a time when government revenue continues under-performing despite an aggressive nationwide campaign having formalized dozens of thousands of small businesses previously operating informally.
New legal changes have also increased fines on tax evasion by up to 50-fold and now range from 500,000 lek (€3,529) on small businesses to 10 million lek (€71,000) on big businesses.
The business community has also strongly opposed new amendments to the Criminal Code which replace fines on tax evasion with prison time. The amendments, which need a qualified majority of 84 votes in the 140-seat parliament, were approved in principle last weekend by exactly 84 votes and are set to become effective starting next year.
