HIERARCHY AND THE ALBANIAN TAX ADMINISTRATION FUNCTION. IS IT A PROMOTER OR A BARRIER IN THE IMPLEMENTATION OF THE TAX LAW?

Aida Gace Llozana

Volume : IV, Issue : XII, December - 2015

HIERARCHY AND THE ALBANIAN TAX ADMINISTRATION FUNCTION. IS IT A PROMOTER OR A BARRIER IN THE IMPLEMENTATION OF THE TAX LAW?

Aida Gace Llozana

Abstract :

Everyone can ask the question of why we have taxes and fees. Practically we can say that a democratic society cannot exist without taxes. Fees and taxes are a necessity because the living standard of a modern society requires it. The tax administration should collect revenues in order to provide goods and services and to guarantee the legitimate rights of the members of the society, to pay pensions, social benefits etc. The main sources of the Albanian tax legislation are the constitution, various laws, acts, and court practices. The Ministry of Finance is at the top of the hierarchy of tax administration and it is responsible for the administration and implementation of laws. There is an important difference between taxation and fees. The fee is an obliged and non–refundable payment in the state budget, while taxes are instrument which guarantee the payment of a person who by law benefits directly from public services. Since 1992 tax law has undergone successive changes. Likewise even the tax administration has undergone transformations. It is responsible for law implementation and for maximizing the tax and fees’ collection. The basic question of this paper is to what extent these two elements favor the economic development of the country.