TIRANA, Oct. 28 – Starting Nov. 12, businesses operating in Albania will face heavier fines of up to 50-fold on tax evasion. The changes to the tax procedures law approved in late September amid strong debates by opposition and the business community have already been published in the Official Gazette after the President exercised his right to pass the law without giving an opinion.
The new changes approved envisage fines of up to 10 million lek (€71,000) on big businesses operating in the wholesale trade for not issuing tax receipts, compared to 200,000 lek (€1,411) currently. Fines on small businesses are also envisaged to increase 10-fold from 50,000 lek (€353) to 500,000 lek (€3,529).
Tax inspectors can also sue the taxpayer in case of repeated violation with tax receipts, says an amendment to article 121 of the tax procedures law.
The new law also leaves times to businesses to register their goods without VAT receipts until the end of December 2015 through self-declaration so that they can escape seizure during inspections.
The legal changes are part of a nationwide campaign against informality which has formalized more than 20,000 businesses since its launch last September, but closed down thousands of others, has been criticized by business representatives as being too aggressive and mainly targeting small businesses, which account for the overwhelming majority of 90 percent of total enterprises in Albania, but whose weight in the total budget revenue is relatively small.
The business community has also expressed concern over the high level of fines which are in huge disproportion to their income or the offence committed.
