Taxation authorities in Albania face two types of financial statements from businesses

Taxation authorities in Albania face two types of financial statements from businesses

Tirana, June 4, 2014/Independent Balkan News Agency

In Albania, a part of private companies operate with two financial statements, one of them is fictitious and is presented to the state authorities and a real one for the company. It often happens that not all employees are declared to the state. The payment declared for them in many cases is very low as opposed to what they actually get paid. This way, some businesses benefit a low level of taxation and other financial obligations. But this burdens the state budget, which collects fewer revenues.

The Albanian National Council of Accounting, with t he support of CFRR has overseen the preparation of financial statements in the country in order to conclude as to how they can be improved. Official sources from this Council told IBNA that a new package of accounting standards for SMEs has been prepared. The council is focused on further simplification of the reporting requirements for small and micro businesses, in an attempt to introduce the best EU standards and practices.

The existence of two financial statements is also confirmed by the minister of Finance, Shkelqim Cani. “Taxation authorities often face two financial statements that are held by enterprises”, says the minister. He says that work is being done in Albania to simplify financial reporting standards for micro businesses and improvement of special aspects for other groups.

Mr. Cani made these comments today in Vienna (photo), in the Ministerial Conference for the Financial Reporting Reform (CFRR), hosted by the World Bank.

The conference called “Stronger SMEs for Prosperity-Development of the Sustainable Systems of Financial Reporting in Europe and Central Asia” is the fifth one which is held in the framework of financial reporting of corporations for minister of Finances, business representatives, regulators, professionals, academic communities and experts from EU institutions.

Minister Cani said that the conference was a unique opportunity to be informed on the progress of financial reforms which are at different stages in European and Central Asia countries. This year, the conference was focused on the development of a regulatory environment in which SMEs (Small and Medium Sized Enterprises) can prosper. /ibna/

Also see: Albanian economy, among debt increase and economic growth