Tax evasion
Term “tax evasion” includes the intentional concealment or evasion of tax obligations, through the non-submission of documents or failure to declare data (e.g., sales or realized income), the falsification of accounting and tax documentation, obtaining falsified documents to fictionally increase business expenses or deductible VAT, leading to the inaccurate calculation of the tax amount.
The concealment of income, with the intent to hide or evade payment of tax obligations, is also considered tax evasion. Taxpayers found to have committed these violations are subject to the applicable provisions of law. No. 9920, dated 19.05.2008 “For tax procedures in the Republic of Albania,” as amended.
The withholding agent of tax, the agent of taxes or duties, if found to have committed tax evasion, shall be required to pay a fine in the following amounts:
- A penalty of 0.061 TP3T of the total amount of tax, duty, or fee, in the event that the tax has been withheld, calculated, and declared at source, or the tax, duty, or fee has been declared, but not remitted to the state budget.
- A penalty of 50% of the full amount of the tax, duty, or fee in the event that the tax at source or the tax is not withheld, or the tax or fee is not collected;
- A penalty of 100% of the full amount of the tax, levy, or fee if you withhold and fail to declare and pay the withholding tax or the tax, levy, or fee collected.
Warning!
Hiding or evading the payment of tax obligations by failing to submit documents or declare necessary information, submitting falsified documents or false declarations or information, which leads to the incorrect calculation of the tax amount, tax or contribution, constitutes tax evasion and is punishable by a fine equal to 100% of the difference between the amount calculated and the amount that should have been paid.
Cash payments or receipts exceeding 150,000 lek
Taxpayers, whether natural or legal persons, traders, who carry out cash sale or purchase transactions among themselves when the value of the transaction exceeds 150,000 lekë, are fined an amount equal to 101 TP3T of the value of each transaction.
This penalty shall apply to both the buyer and the seller if both are legal entities and/or traders, and if the buyer has paid the seller directly in cash.
If the buyer has paid in cash into the seller's bank account, the penalty applies only to the buyer. Likewise, if the seller, authorized by the buyer to settle the transaction, has withdrawn cash from the buyer's bank account, the penalty applies to the seller.
Source: General Directorate of Taxes.