TIRANA, July.14 – A list of ten businesses being investigated for owing back taxes has been presented by the Tax Authority head, Gerta Picari. This news follows the controversial decision to impose a 13 million Euro fine on the TopMedia company for taxes allegedly owed. According to tax authorities, the following companies present serious irregularities and have not been checked for periods reaching up to 5 years:
“Valtelina” (Lori Kafe), “Aris”, “M쳫uri” (Illy Kafe), “Digitalb”, “Super Sport”, “Top Albania Radio”, “Top Record”, “Video Grafik Agency”, “Shqip”, and “Top Channel”. These irregularities include: minimal payments, false declaration of businesses operating at a loss and considerable transaction volumes between each other suggesting practices harmful to free competition.
Top Channel:
Picari declared that no financial audit has ever been conducted at the Top Channel company and that during this audit the authorities did not find the host cooperative. On the contrary, inspectors have been faced with not only a lack of cooperation, but also were allegedly given false documents, and even subjected to what Picari called, ‘psychological pressure.’ Picari further stated that from the period April-May 2005, “Top Channel” only declared 23% of the revenues from advertisements; hence, possible evasion is above the level of 75 percent. This conclusion has been reported by the controlling authority regarding Medias KKRT, head at the time by Halil Lalaj. For the period 2002-2007, the company has additional irregularities, according to Picari. An example includes declaring 57 employees in 2002 and 216 in 2007. The salaries are also declared at minimal levels, alleges Picari.
Digitalb:
As far as the “Digitalb” company is concerned, the method of avoiding taxes outlined by Picari has been different than Top Chanel. During 2005-2007 this company has imported 2.044.000 cards from which 1.110.000 belong to the company Super Sport and 934 000, or 47 percent, belong to “Digitalb”. From the Digitalb cards no data exists for the import specific information for 440 000 of them. The customs authorities have released no certificates of origin for these cards. The cards for one-year usage have been reported as one-month cards to lower taxation payments. Obtaining information from the companies “Vodafone” and “AMC”, with which “Digitalb” has a contract of collaboration given that customers can activate the services through messages, tax authorities have discovered that some 330 000 activated cards have not been reported and the company, hence, has been declared as operating at a loss.
“Valtelina” (Lori Kafe):
For the last five years, the company has imported 1 300 tons of coffee, from which it has allegedly declared 700 tons only for 2006, hence 54 percent of the entire amount. For the other years the company has reported an average of 125 ton, or 12 percent, which may have resulted tax evasion. Picari explains that the total amount of declared coffee is 64.5 tons, indicated also by the irregular wrapping material figures which are 50 percent more than the declared sales figure. Picari alleges that the sales price has been incorrectly stated as well at 540 l/kg while market prices vary between 700 l/kg and 3 000 l/kg, with a median figure of 1 100 l/kg. Hence, tax calculations have been made below the minimum price of sales and not according to average figures. The company has also reported two coffee shops allegedly operating at a loss (located inside the Hotel Sheraton and ETC.) Additional irregularities have also been observed in the declared number of employees and their wages.
“ARIS” Ltd:
During 2002-2007 this company has imported 8 200 tons of coffee. From the audit results it appears 3,000 tons have been reported with false purchase bills. 2500 allegedly forged sales records have been declared by this company to fictional companies that do not exist or are not registered at the tax authorities. Other bills have been declared to companies that do not report to have been supplied by ARIS. Picari explains that manipulations have also been done at the declared price 190 – 210 lek/kg, whereas market research shows that the market prices are considerably higher than the declared value. This company, hence, has declared losses, high levels of crediting from loans and has not disbursed any tax payments.
“M쳫uri” (Illy Kafe):
Similar problems have been identified in the finances and reporting of this company, as in the case of Valtelina. The tax authorities are still investigating the sales records of this company.
