Albania – International Tax Cooperation (OECD), New Law Against Tax Evasion and Joint Inspections of Competent Authorities

In 2013, the Republic of Albania ratified “The Convention on Mutual Administrative Assistance in Tax Matters”. The Convention is considered the most appropriate multilateral instrument for all forms of tax cooperation to combat tax evasion and avoidance in the OECD context. The Agreement was jointly developed by the OECD (Organisation for Economic Co-operation and Development) and the Council of Europe in 1988, and amended by the Protocol in 2010. The Convention has been ratified by a wide range of countries around the world, both members of the Council of Europe and non-members of the Council of Europe.

In this regard, the Albanian Government, in addition to the ratification of the Convention and the issuance of the DCM nr. 178, of 9.3.2016 “for the approval of the Multilateral Agreement, of the Competent Authority, for the automatic exchange of financial account information”, has recently prepared and submitted to Parliament a bill for the implementation of this Convention, entitled “on the Automatic Exchange of Financial Account Information”.

The main objective is to provide administrative assistance to public authorities in tax matters between the parties to the convention on activities of individuals and companies belonging to signatory states. Specifically, the Authorities in charge: (a) will provide the exchange of information, including simultaneous tax inspections and participation in tax inspections abroad; (b) will provide assistance in the recovery of evaded tax, including conservation measures; (c) will provide supply services for documents considered useful.

From the moment of the entry into force of this Law, Financial Institutions shall have the obligation to cooperate, assist each other and inform about the financial activities of suspicious clients (including banks, as provided for by Articles 61/1 and 62 of Law No. 9920, dated 19.05.2008 “for Fiscal Procedures in the Republic of Albania”) in accordance with the internal regulations for the processing of fiscal and personal data.