Transfer of tax liability to a third party

In accordance with the provisions of Law No. 9920, dated 05/19/2008 “On Tax Procedures in the Republic of Albania,” as amended, if the unpaid tax liability cannot be collected from the sale of the taxpayer's seized assets, The Tax Administration has the right to demand the fulfillment of this obligation from third parties by transferring the taxpayer's liability to them. Third parties are considered to be those persons who, during the period of the taxpayer's compulsory collection of liabilities, have received various assets from them. The Tax Administration sends a notice to the third party, and this notice contains information about the trading name or the name in the case of a natural person, or individual, of the third party to whom the liability is transferred, the NIPT, if any, its registered office or place of residence, the amount of the obligation being transferred to it as a tax liability, and information about the taxpayer debtor. The tax liability to be calculated for the third party to whom the liability has been transferred will be based on the market value of the asset transferred to that third party. The person to whom the liability is transferred is granted all the rights to challenge this transfer and to demonstrate to the Tax Administration that the tax liability cannot be transferred to that person.

Warning! If the person to whom the obligation is transferred does not object to it within the time limits provided by law for the taxpayer, even after being notified by the tax administration, the tax administration is obliged to initiate all enforcement measures. that the law on forced collection of taxes from him gives.

The right to claim obligations from a third party

The Tax Administration, together with the other procedures for the coercive collection of tax obligations set out in Law No. 9920 of 19.05.2008 “On Tax Procedures in the Republic of Albania,” as amended, in cases where it is aware that third parties owe certain amounts to the delinquent taxpayer, may require those persons to pay their monetary obligations to the tax administration. Initially, the Tax Administration notifies third parties in writing to make these payments in favor of the tax administration, and their obligation arises within 30 days from the date of receipt of the notice. In this case as well, the procedures for forcibly collecting the obligation from the third party apply if the latter has not paid the obligation within the deadline.

Liability of a partner, shareholder, and director

In the case of legal entities, when, after the sale of the taxpayer debtor's assets, the tax administration has failed to collect the unpaid tax liability owed to it, it transfers the legal entity's tax liability to its partners, shareholders, and administrators. Only those persons who appear with the above-mentioned capacities in the commercial register or in other registers where the legal entity is registered, after the date of issuance of the tax liability notice to the taxpayer, will be considered as such. In any event, this individual liability shall be equal to the partner's or shareholder's share in the company's registered capital. In those cases, when the debtor is also the company's administrator, the Tax Administration checks whether the administrator is a partner or shareholder in the company's registered capital. When the administrator is a partner or shareholder in the company's registered capital, his liability is the same as that of the other partners or shareholders of the company. In cases where the administrator is not a partner, the Tax Administration treats him as a jointly and severally liable debtor, together with the company's other partners or administrators. If the legal entity taxpayer that has outstanding tax liabilities fails to pay these liabilities even after completing the liquidation or bankruptcy process, the unpaid tax liability is transferred as a joint and several liability to the persons who held the status of partner, shareholder, or administrator.administrators at the time the liquidation or bankruptcy process of the taxpayer debtor is carried out for the tax liabilities.