Economic damages in the tax sector during 2005-2010

Economic damages in the tax sector is mainly caused as a result of violation of tax and fiscal legislation. Financial discipline violations were noted as deviations in the declaration of value added taxes (VAT) and income taxes; introducing several unknown cost in the balance sheet for the calculation of corporate taxes, failure to declare and to pay income taxes; failure of payments of income tax deductions or erroneous estimations of personal income tax, evasion of tax at source; the non application of penalties, tax liabilities and reimbursed forgiven unfairly etc..

For the period 2005-2010, the economic damages in the taxes sector are presented in the graph below:

^{Source: Supreme State Audit (SSA)
Comments and Analysis: Open Data Albania (ODA)}

The highest value of economic damages was recorded in 2006-2007; at the level of 4.782.279.000 Albanian Lek and 3.671.261.000 Albanian Lek respectively. The lowest level of economic damages is recorded in 2010 at the level of 532.682.000 Albanian Lek.

Economic damages in the tax sector to the total damage have been steadily decreasing from 65.29% of total damage in 2006 to 33.01% of total damage in 2010.

The total value of the violations caused by the changes of the methodology used by the Supreme State Audit in auditing the financial statements of entities has been due to the entry into force of the law no. 9920 “On tax procedures in Republic of Albania”, article 25, 63.

According to Article 25: Confidentiality claims that officers and employees of central and local tax administration protect the confidentiality of tax and financial data of the taxpayer during the whole period of their work.

This article is in the disadvantages of transparency and effectiveness in the exercise of auditing, because it gives no access to the Supreme State Audit in the financial statements of entities.

^{Source: Supreme State Audit (SSA)
Comments and Analysis: Open Data Albania (ODA)}

The data are summarized and presented in the table below:

^{Source: Supreme State Audit (SSA)
Comments and Analysis: Open Data Albania (ODA)}