KLSH reveals the scheme, evades 20 million euros in the construction sector

2023-11-08 10:58:00, Aktualitet CNA

KLSH reveals the scheme, evades 20 million euros in the construction sector

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The construction sector has led economic growth in recent years, but its contribution to employment and budget income is not in the same proportions.

In a recent audit in the Directorate of Large Taxpayers for the year 2022, the High State Control found an evasion scheme in the construction sector worth over 2 billion lek, about 20 million euros. This amount has been evidenced by reporting controls only in a few construction companies and not in the entire sector.

The scheme was based on declarations and invoices that carried out sales transactions below reference prices approved by government decisions precisely for tax purposes.

KLSH notes that as a result of the actions carried out in violation of the law on tax procedures, on income tax, on value added tax, negative effects were found in the collection of budget revenues in the amount of 2,024,711 thousand ALL, specifically as a result of invoicing of construction work situations below the level determined by the National Housing Authority.

This obligation was created as a result of deficiencies in the inventory, sales without a tax invoice, incorrect crediting of VAT on fuel, incorrect application of the VAT adjustment coefficient, sales of construction objects below the established reference price.

Also, in the on-site control reports, there were inaccuracies in the transactions with the partner carried out contrary to the principles and conditions of the market by not applying interest rates, and by not recognizing as income prepayments for the sale of residential units, which are equipped with a certificate of use, but without title transfer.

The current legislation in the field of construction has a clear obligation to respect the minimum fiscal cost, the minimum fiscal price and the minimum fiscal profit according to the provisions made in Article 20 "Construction works, carrying out the construction process, as well as maintenance".

Thus, the instruction of the Minister of Finance of 2015 "On the tax on added value" is mandatory for the performance of alternative assessments, for which the DPT has taken an illegal position and in excess of its functional competences and duties, notes the HLSH.

The Supreme State Audit asked the General Directorate of Taxes to take immediate measures to determine the effects of the missing alternative assessments and consequently on tax revenues, as well as to continue to follow the implementation of the legal provisions regarding the respect of minimum fiscal cost, minimum fiscal price and minimum fiscal profit in the construction sector. /Monitor