The Role of the Control Inspector in the Increase of Performance of the Tax Administration

• Author: Elsia Gjika
• Position: Regional Tax Directorate, Elbasan
• Pages: 181-185

European Journal of Economics, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

Vol. 3 No. 1

January, 2019

ISSN 2519-1284

Acces online at www.iipccl.org

181

The Role of the Control Inspector in the Increase of Performance of the Tax

Administration

Ph.D. (C.) Elsia Gjika

Regional Tax Directorate, Elbasan

Abstract

The importance of the activity and performance of the Tax Administration means that it is

important to study them in order to understand how the Tax Administration operates. The

objectives of this institution are the collection and administration of taxes, national taxes,

public payments, social insurance contributions; implementation of the current tax legislation,

keeping a balance between the rights and obligations of taxpayers; have the greatest possible

impact on the taxpayers’ community by improving how they meet their obligations; prevent

tax evasion and tax fraud; and use any available instrument to make the tax payers meet their

obligations and also make use of every service available to them. If a er careful analysis of

the fi nancial statements the Tax Inspector considers the entities as risky, these entities should

be the focus of a wide range of controls. This would avoid frequent audits at entities that do

not pose a risk and saves time and administrative costs, reduces dissatisfaction caused by

unreasonable controls, and assesses the accountability and the transparency of the entities.

Keywords: The Control Department, tax risk, fi nancial reports.

The Tax Administration is in a delicate state because of permanent sta movement

and rotation, what dictates the continuous need for training. It goes without saying

that the employees that implement the tax laws have to be up to the level of these

laws, i.e. properly prepared and capable. Qualifi ed sta discovers more, hence the

tax revenue increases. The increase of tax revenue has a direct e ect on the state

budget. Also, a qualifi ed Tax Administration means lower tax evasion, because the

entities will be more exposed to the critical eye of the tax inspector.

A Risk Management Directorate has been created at the General Directorate, which

uses its models and programmes to identify 70% of the cases to be audited, and

to allocate the hours available for each audit, depending on the risk. The Regional

Directorates and the Directorate of Tax Investigations propose the rest of the entities

to be audited.

1. Main areas with identifi ed violations in 2017

1402 full operational controls were conducted in 2007 in the whole territory of the

Republic of Albania. This article presents a summarised analysis of the total fi ndings

and the main area where the most violations have been identifi ed.

The violations that occur the most are listed below:

 Failure to declare the revenue by issuing incorrect receipts/invoices, which

leads to reassessment of the liabilities as below:

• Reassessment from selling under cost,

• Reassessment from selling below the market,