Big businesses have 2.5 mln Euro of goods seized

TIRANA, Dec. 20 – Albania’s Directorate General of Taxes says it has seized goods worth 350 million lek, (around Euro 2.5 million) from big and VIP businesses during recent controls after identifying tax fraud. The seized goods include food, and beverage products, construction materials, furniture from big and VIP taxpayers making false declaration of their balance sheets.
Tax inspectors say they have also suspended the activity of 30 small and medium-sized businesses, imposed lek 2 million of penalties for 15 taxpayers unequipped with tax registers or not issuing tax receipts.
The penalties came after 1,000 businesses operating in Albania’s main cities were inspected during the first two weeks of December, says the General Tax Directorate in a statement.
Officials say they will remain vigilant in the next few days of this year to prevent tax abuses during year-end holidays when circulation of goods considerably increases.
The tax administration says that recent changes to the tax procedures law allow inspectors to seize the goods of unregistered businesses immediately.
Latest data by the General Tax Directorate show only some 56,000 out of a reported total of 90,000 small businesses had installed the compulsory cash registers at the time when the deadline for their reimbursement expired at the end of February, 2011.
Until recently, if a business had not installed the fiscal cash registers it would face a fine of 20,000 to 100,000 lek.
Finance Ministry data show government revenues during Jan-Nov. 2011 rose by only 0.8 percent, lower even to the same period in the crisis year of 2009 when they still managed to grow by 2.1 percent year-on-year. The 2011 performance comes at a time when the revenue targets were lowered with last July’s budget cut and some luxury products have seen an increase in their excise rates. The situation is mainly a result of poor progress in tax collection, with revenues reported 4.3 percent up year on year, but 4.4 percent down or around 12.5 billion lek less compared to the target for the first 11 months of this year.
VAT and excise tax revenues, which account for 50 percent of total tax revenues and are indirect indicators to measure domestic consumption, have grown by only 3.3 percent and 3.4 percent, respectively during the Jan-Nov period, yet failing to meet targets.