From businesses to taxes and customs, up until 2014, it turns out that there are 100 million lek or about 1 billion euros in unpaid obligations.
The figure for unpaid business liabilities until 2014, which is expected to be completely eliminated with the draft law of the fiscal package, was made public by Finance Minister Petrit Malaj at a meeting of the Parliamentary Committee on Legal Affairs.
The draft law "On the cancellation, extinguishment and payment of tax liabilities to the central tax administration and of liabilities payable to customs" in addition to the full cancellation of unpaid liabilities also provides for partial cancellation if 50% or 75% of the principal is paid.
But the draft law on the cancellation of obligations, approved by the Economy Committee, has sparked debate among opposition MPs and experts over the publication of the list of names of beneficiaries whose unpaid obligations up to 2014 will be automatically cancelled.
Experts claim that the list should be made public, as there are many businesses that benefit based on the passive list, but in the meantime they carry out other activities, the same person had a factory, went bankrupt and opened a construction company. So this entity generates income and profits and does not have to be relieved by deleting liabilities. Experts also underline that this lack of transparency of the list discourages regular businesses.
Opposition MPs have repeatedly requested the publication of the list of unpaid debts of businesses. MP Enno Bozdo proposed that the draft law also include the publication of a list of 3,000 beneficiaries with benefits exceeding 5 million lek.
"You forgive 2 billion euros of debts, a huge amount for Albania. It's good that you forgive them, but we need to know who these debts are forgiven for. Who benefits, we need to understand where this money goes. I agree that you forgive the money to an oligarch. Never. We are not asking for sensitive tax data, but the list of forgiven debts over 50 thousand euros should be made public", MP Enno Bozdo previously stated at the meeting of the Economy Committee.
SP MP Erjon Braçe also supported the proposal for list transparency.
"This is a favor that goes beyond normal fiscal activity in accordance with the laws in the country and the names of the beneficiaries should be made public. When we asked the Minister of Finance about this, he said that 90% of those whose obligations will be extinguished are closed companies. What is the problem in this case?"
But representatives of the Ministry of Finance in the committee claimed that sensitive data cannot be made public.
According to the data made public in relation to the draft law, the tax administration has a total of 202,387 debtor taxpayers with unpaid tax liabilities in the amount of 162.5 billion lek or about 1.7 billion euros until December 31, 2024. The principal accounts for 60% of the debt in the amount of 98.4 billion lek or about 1 billion euros. 35% of it is taken up by fines in the amount of 581 million euros and 5% is taken up by interests in the amount of 79 million euros.
As of December 31, 2014, a tax debt of 29.5 billion lek or about 304 million euros had been created. The total debt as of December 31, 2014, excluding social security and health contributions, is estimated at 25 billion lek or about 260 million euros.
The outstanding debts at Customs as of December 31, 2024 are estimated at 48.5 billion lek or about 500 million euros, unpaid by 4,684 debtors. The principal accounts for 27% of the debt, amounting to 13.1 billion lek. The majority of them consist of fines worth 26.5 billion lek (55% of the total) and late payment interest worth 8.9 billion lek or 18% of the total.
As of December 31, 2014, the debt created at Customs amounts to 25.7 billion lek or about 266 million euros, unpaid obligations over 10 years that will be written off.
According to calculations from public data, the draft law envisages a total of completely erasing around 525 million euros in unpaid liabilities of businesses by December 31, 2014.
Of the 260 million euros that will be completely hidden in taxes, the largest debt has been created for unpaid VAT in the amount of 11.6 billion lek, for profit tax 6.2 billion lek, for other taxes worth 6.5 billion lek and for TAP the unpaid amount results in 675 million lek.
At Customs, the largest burden of the debt that is required to be erased is fines and interest worth 200 million euros./ Monitor.al/
