- In October 2019, the General Directorate of Taxes reported the completion of 114 of the 159 planned fiscal visits to high-risk entities in the construction sector, as part of the Operational Plan against Informality.
- The self-reporting of tax visits, without waiting for an actual inspection, It led to an increase in self-reporting: the turnover of notified entities rose by 51%, VAT liability by about 36%, and VAT payments by about 49%, compared with the same period of the previous year.
- Risk-based control remains DPT's standard method today, repeated over time across various sectors, not just a feature of construction in 2019.
- The specific figures for 2019 (159, 114, 28 subjects, growth percentages) are historical and specific to that campaign; each new campaign has its own subjects and figures.
On October 18, 2019, the General Directorate of Taxes reported that, of 159 entities identified as high risk in the construction sector, 114 tax inspections had been completed, while the verification process was ongoing for another 28 entities. The visits were part of the Operational Plan against Informality, based on the risk module and carried out by the Field Monitoring Units and the Control Directorate.
From our daily work, we see that businesses in sectors that fall under the scope of a risk-based audit campaign often perceive the notification of a tax visit as a direct accusation, Meanwhile, DPT statistics show that the primary goal was to encourage self-correction, not merely to find violations.
Read also: Construction accounting for the contractor and for technical trades..
How the 2019 construction plan worked
From the risk module to tax audits
The mechanism operated in three steps: identifying high-risk entities through the analytical module (primarily based on a decline in declared turnover), notification of the entity of a tax audit with a detailed work program, and the audit itself, followed by verification of reassessments and self-corrections in subsequent financial statements.
The self-reporting effect
The most important data from this campaign was not the number of visits, but the effect of the notification itself, before the visit took place. Subjects notified of a tax audit increased their reported turnover by 51%, their VAT liability by about 36%, and their VAT payments by about 49%, compared with the same period the previous year. a clear sign that most preferred to self-correct rather than wait for the audit.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsWhy does it matter today?
Risk-based controls continue in other sectors.
The risk-based control method, identifying subjects through data analysis rather than solely through random checks, remains the standard tool of the Albanian tax administration. Over the years, similar campaigns have also been carried out in other sectors, such as bars and restaurants, with specific targets, figures, and work programs for each campaign. The 2019 campaign was an early example of this approach, not the first nor the last.
How we handle this with our clients
Regardless of the sector, we advise our clients to keep their turnover and VAT returns up to date and in line with the reality of their operations, so that a potential notice of a tax audit does not catch them needing reassessments or last-minute self-corrections.
Frequently asked questions
Is the specific 2019 plan for the construction sector still ongoing?
Not as a standalone campaign with those figures, but the risk-based control mechanism used back then remains an ongoing part of DPT's work.
Does the notice of a tax audit mean that I'm guilty?
Not necessarily. As the 2019 case showed, most notified entities used the time before the visit to self-correct their statements, rather than to be found in violation.
Which sectors are under surveillance today?
This varies from year to year, according to data from the DPT risk module. We recommend checking the official notices from the tax administration for the current campaigns.
