Ilda Kadrimi (Blaceri)
Lecturer, Albanian University, Albania
Micro-units are one of the main forms of business organization in the world and in Albania. Undertaking policies to reduce informality and tax evasion is a direct benefit to the Albanian economy in the context of the importance and contribution that these entities bring to the state budget. Micro-units currently have a simplified reporting framework under SKK 15 and are implemented in the framework of the approximation of Albanian legislation with that of the European Union. The accounting reporting of these units is not seen as a driving force for informality or fiscal evasion. On the other hand, in terms of fiscal reporting and existing fiscal laws, there is an opportunity to improve them as a way to reduce fiscal evasion and informality of micro-units. This conclusion comes in the context of the case study which deals with the legal vacuum in the law of VAT that brings inequality against taxpayers. Its elimination is argued by undertaking the policy of removing the exclusion threshold for annual turnover in the trade sector, as the questionnaire also finds the biggest problems in the sector. The key recommendations are needed to be directly implemented in the law on VAT and at the same time to adopt an action strategy to eliminate the negative effects that bring the main factor in promoting fiscal informality and evasion, which is the tendency for non-disclosure of the real financial situation as a way to pay less taxes. Taking these two recommendations would also have an indirect effect on reducing national informality and tax evasion.
Key words
Business, accounting reporting, fiscal reporting, informality, tax evasion
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