Government takes measure for tax evasion from big companies
22/11/2016 00:00
Opposition demonstrators clash with the police in the protest in front of Tirana municipality, foreign embassies condemn acts of violence 19/04 16:00
Big companies are avoiding taxes by taking loans from their mother
companies abroad. This ahs pushed the government to propose not
recognizing their spending on debt interest rates as tax-deductible, if
the sum goes more than 30% of the capital.
A Tax Office analyzation found that this method was randomly used by big Albanian companies to avoid taxes. Ervin Mete explains the reasons why the Ministry of Finances proposed to limit the spending of companies for interest rates.
Debt interest spending is tax deductible, and this makes big companies to take loans from their mother companies abroad and by paying them back, they avoid taxes in Albania, according to the Deputy Minister of Economy.
Lorenc Gjoni, from the US Chamber of Commerce, says that this measure will make it difficult for businesses to get loans, and for many it will turn into an unfair collective punishment.
The Tax Office analyze found that 30% of the companies have made use of this method, making the government lose millions.
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