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

AuthorElsia Gjika
PositionRegional Tax Directorate, Elbasan
European Journal of Economics, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
Vol. 3 No. 1
January, 2019
ISSN 2519-1284
Acces online at
The Role of the Control Inspector in the Increase of Performance of the Tax
Ph.D. (C.) Elsia Gjika
Regional Tax Directorate, Elbasan
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 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, 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. Quali 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 quali 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 identi 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 ndings
and the main area where the most violations have been identi 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,

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