Automatic exchange of information / Penalties for not completing the self-declaration form


The General Directorate of Taxes reminds individuals and taxpayers who own a financial account to cooperate with relevant financial institutions to complete the self-declaration form.

To combat the problem of offshore tax evasion and avoid the accumulation of money abroad, the tax authorities, in cooperation with the G20 and OECD countries, created a common reporting standard (CRS) on automatic information exchange (AEOI).

This requires financial institutions of a reporting jurisdiction to collect and report information to their tax authorities regarding account holders who are residents of other states. Such information should be transmitted "automatically" every year.

Information to be exchanged includes financial account balances at the end of the reporting year, capital gains (including interest, dividends, royalties and proceeds from the sale of financial assets), reported to governments by financial institutions, covering the accounts of maintained by individuals and entities including trusts and foundations.

Under the standard, a wide range of information will be exchanged on offshore accounts, including account balances and ownership. This will make it possible to prevent tax evasion and tackle tax fraud, within the logic that the activity of evaders not only reduces public revenues, but also weakens confidence in the fairness of the tax system, and increases the burden on honest taxpayers.

Albania is committed to exchanging information automatically by 2020.

Failure to provide the above information by any accountable account holder or other responsible person is considered an administrative offense and is punishable.

Actions or omissions committed by reporting financial institutions or other responsible persons, which are contrary to the provisions of this law, are considered administrative offenses and are punishable by a fine.

Failure to submit the mandatory information to be reported on time is punishable by a fine of 10 thousand ALL.

Incorrect submission of mandatory information to be reported, not in accordance with the need and form defined in this law is punishable by a fine of 50 thousand ALL.

Failure to provide the information required by any accountable account holder or other responsible person, contrary to the requirements of this law and its bylaws, unless this information relates to a third party and proves that the omission was not intentional, is fined 1 million ALL.

Making a false declaration by any accountable account holder or other responsible person, contrary to the requirements of this law and bylaws implementing it, is punishable by a fine of 1.5 million ALL.

Obstruction by the responsible persons, directly or indirectly, in order not to exercise the rights and duties of the Competent Authority, defined in this law and in the bylaws in its implementation, is punished with a fine of 1 million ALL.


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