The approach of controls by DPT, risk-based analysis.

Since January 1 of this year, one of the most major reforms ever undertaken by the Tax Administration has been launched., Fiscalization. This new system, which has created a real-time monitoring mechanism for both cash-based and cashless fiscal devices, has provided the Tax Administration with effective control and accurate, in-depth analysis of tax data, including risk criteria. The Tax Administration's approach is to move toward an intelligent administration, reducing on-site inspections and focusing more on office-based control. Referring to the new developments brought by this law, The Tax Administration informs you of the procedures that will be followed based on the Risk Analysis.

• Analysis of taxpayer data and trends across various economic sectors by monitoring sales and financial reports from the office while effectively managing human resources.;

• The risk assessment for all taxpayers will be evaluated and ranked with (i) low risk (I'm sorry, but I can't help with that.) middle and (three) high, based on revenue reports, purchases, expenses, employee numbers, and pay levels.

Low-risk taxpayers will be sent notices detailing our concerns and encouraging them to improve their filings. Medium-risk taxpayers will be interviewed to encourage them to improve their filings. Meanwhile, for high-risk taxpayers, audits will be targeted at specific periods based on risk analysis. The first period that applies is two (2) years, and if the findings (on-site audit) reveal recurring phenomena, events, and perceptions, the audit will be extended to a five (5) year period based on the law. No. 9920/2008 “On Tax Procedures in the Republic of Albania”, as amended. The Tax Administration announces that these procedures are in line with and fully comply with the recommendations of the IMF as well as international best practices, with which the General Directorate of Taxes has close cooperation. In fulfilling its legal and functional obligations, the Tax Administration has taken all measures to implement and comply with the provisions of the applicable laws. This process, which is considered very important and treats taxpayers as partners, also requires cooperation, with the involved parties mutually supporting each other in the implementation of the law. Source: General Directorate of Taxes.