The scary fiscal Evasion in Albania, here's “

A regional survey on the practices of the hidden economy in Macedonia and Albania highlights the high evasion of the Albanian economy, where 84.3% of the surveyed companies confirmed that they tend to constantly hide income, in most cases, or sometimes.

For Macedonia, this percentage is obviously lower, where 54.4% of the surveyed businesses confirm that hidden economic practices are used in their sector in a constant manner, most cases, or sometimes (See chart)

The poll was conducted by the Centre for Research and Policy making (CRPM) in Macedonia and the Institute for Democracy and Mediation (IDM) in Albania, with identical methodology. For Macedonia, the survey was conducted in late 2016 and for Albania in April 2017, with a champion of 70 enterprises for each country, representatives according to the performance and sectoral division in the economy and demographically. The report is titled: the high “The high bar towards business leads to hiding business-perspective activity and the hidden economy in Macedonia, Albania and Kosovo”.

The report stresses that hiding the lap is more significant in Albania, where 40% of those who claimed to try to hide their income said this practice was used in most cases. )

The results of these data are in the same line as finding earlier surveys with the population for the use of fiscal coupons, including Kosovo. For example, 17% in Macedonia, 52% in Albania and 29.6% of respondents from Kosovo confirmed that they had never received, or had rarely received tax vouchers for clothing and shoes. For alcohol and cigarettes, 20% in Macedonia, 52% in Albania and 40% of respondents from Kosovo also confirmed that they had rarely received, or had never received tax vouchers. Although the cases for not issuing the tax coupon are relatively rare in the three countries and are below 18% level, there are obvious exceptions, such as for Albania for alcohol/cigare categories (26.5%), books (28.3%), and for Kosovo also for books (26%). The survey with businesses confirms these findings, while 52% in Macedonia and 68% in Albania have confirmed that tax voucher is constantly carried out in most or sometimes in their respective sectors, where the response sometimes dominates the report.

Polls with populations and businesses in Macedonia, Albania and Kosovo have outlined an apparent tendency of businesses to hide part of their income, which in turn negatively impact government competitiveness and supervision, as well as public revenues, the report said.

Some of the most common methods that businesses use to avoid or manipulate with tax reporting are:

To hire a person without contract or contract with hidden clauses;

Low-income reporting;

No paying taxes, taxes and excises;

Bribery - Giving and Taking

Don't issue bills

Persistence on Cash

Making tender-free procurements

Execution of Specific Agreements

Outdoor or illegal asset insertions

VAT pay Manipulation

Use of accounting tricks in order to pay less taxes.

VAT Manipulation

Another approach of some businesses in order to pay lower taxes is VAT manipulation and implementation of accounting tricks, the report notes.

A third of businesses in Macedonia (31.4%) and two-thirds in Albania (60%) have confirmed that VAT manipulation is constantly used, in most cases, or sometimes.

Similarly, about 1/4 of companies in Macedonia (24.2%) and 1/3 of companies in Albania (32.3%) believe that between 11% and 51% of companies in their sector pay less taxes than they seem to pay, using accounting tricks.

“VAT-related losses occur either through unorganised tax evasion (not issuing bills and tax vouchers, under the report of sales of current products and services, or overestimation of raw materials) or through a more organized abuse of the system, through non-existence or bankrupt (eg. Carouse fraud. The latter includes one (e.g. Retailer without tax receipts or to the maximum of two parties (business businesses), when the amount of bills is manipulated) during transactions. The latter includes complex networks that activate real businesses (e.g. Real producers, logistical companies, accounting offices and companies with zero assets, owned by poor, illiterate, even condemned people, among which paper transactions are conducted on many levels.”, says the report, citing a study of SELDI.net Secret Economics and Good Governance in Southeast Europe: Regional Appreciation 2016 report. /Monitor