What risks do businesses with tax debts face? - From confiscation of daily turnover to complete seizure of assets
Businesses are significantly neglecting the payment of tax obligations to the state budget, risking falling prey to harsh measures that could lead to the bankruptcy of their enterprise. In recent days, the tax administration has focused its attention on collecting debts incurred by businesses, recalling the consequences that may arise if they do not comply with the legislation in force. But despite this, in May alone, newly created obligations reached 47 million euros.
But what exactly do businesses that have accumulated debts or do not pay them on time risk? Referring to the law "On Tax Procedures in the Republic of Albania", the tax administration has the powers to collect unpaid tax liabilities by force, for which the right to appeal has not been exercised or all stages of administrative and judicial review have passed.
According to Article 89 of the law , "the tax administration may engage its structures to verify and monitor the taxpayer's commercial activity on site, with the aim of confiscating at the end of each day an amount not less than 50 percent of the turnover achieved, but not more than the tax liability, for which the procedure for the forced collection of tax liabilities has begun, on behalf of the taxpayer's outstanding tax liabilities. Payment of the amount of the seized turnover is transferred to the tax administration's bank account the next day."
A taxpayer for whom the tax administration has begun the forcible collection of unpaid tax liabilities may not transfer amounts of money from his account or sell/transfer the assets or capital of the company, except in cases where they are intended to settle the liability.
On the other hand, taxes may request from the competent authorities: the prohibition of the movement outside the territory of the Republic of Albania of the administrator, legal entity, partner and shareholder of the legal entity or commercial individual, which has unpaid obligations, as well as the prohibition of the transfer abroad of amounts deposited in bank accounts, in the name of the commercial individual or commercial company, which has unpaid obligations.
The tax administration also has the right to request any commercial bank, where the taxpayer has an account in his/her name, to block an amount, which must be the lesser of: the amount requested to be withheld and the amount that results at that moment in the taxpayer's bank account. The blocked amount is transferred to the account of the tax administration.
According to the law in force, the tax authorities have the right to impose a security measure on the unpaid tax liability, which may be, as the case may be, a security lien or a mortgage lien, and if the liability is still not repaid, the security measure is executed, through the seizure, confiscation and sale of the secured property in favor of the tax administration, owned by the taxpayer. All of the taxpayer's property is subject to seizure to the extent of the unpaid tax liability.
The total debt accumulated by enterprises towards the tax administration over the years amounts to 162.5 billion lek.
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