Large companies in Albania operate with two financial statements

Large companies in Albania operate with two financial statements

Tirana, 30 July 2015/Independent Balkan News Agency

Albania is a country where companies operate with two financial statements, one for the tax authorities and one for the banks. This was declared today by the Albanian PM, Edi Rama. Rama spoke in a conference held by the Ministry of Economy, in cooperation with the Center for International Development of the University of Harvard.

Mr. Rama was harsh with the phenomenon of informality and warned a “storm” in September through a large scale operation.

According to him, “in the revenues sector, one part pays and another doesn’t and those who pay, also pay for those who don’t pay”.

Rama said that the government that he leads is aiming to further cut taxes. “The final objective of this battle in every commercial activity against informality, is to for us to cut taxes. But in order to cut taxes for everyone, we must first make sure that everyone pays”.

The prime minister said that this operation will include customs, taxation and Labor Inspectorate. There will also be amendments in the Criminal Code for tax evasion and informality at work. “We will increase penal measures in order for everyone to use tills and for everyone to declare incomes”, Mr. Rama said.

Here, the head of the government also talked about large companies for which he said that they operate with two financial statements. “We are the country where companies operate with two financial statements, one for tax authorities and one for banks. They declare minimum revenues to the tax authorities to play the victim and declare maximum revenues to banks to offer assurances that they’re able to pay back large loans”, Rama said.

Rama said that on January 1, 2018, banks must only recognize the statement that companies submit to tax authorities and “not illegal statements and use them as statements which constitutes the basis for the decision to grant a loan or not”. /ibna/