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The Exchange of Tax Information Portal is an initiative of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Global Forum conducts peer reviews of its member jurisdictions' ability to co-operate with other tax administrations in accordance with the internationally agreed standard. The standard provides for exchange of information on request where it is foreseeably relevant to the administration and enforcement of the domestic tax laws of the requesting jurisdiction. Effective exchange of information requires that jurisdictions ensure information is available, that it can be obtained by the tax authorities and that there are mechanisms in place allowing for the exchange of that information. The Global Forum's peer review process examines both the legal and regulatory aspects of exchange (Phase 1 reviews) and the exchange of information in practice (Phase 2). The EOI Portal will track the development of these peer reviews, including changes that jurisdictions make in response to the Global Forum's recommendations.

Peer Review: Peer Review Report Phase 1 Legal and Regulatory Framework - Albania

This report for Albania has been published on 3 Aug 2015. You can buy this report, or browse it online below.

Skip directly to the Executive Summary. You may also want to view the tables of determinations and ratings.




Determinations and Recommendations

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   Foreign companies with a sufficient nexus to Albania (e.g. being resident for tax purposes) and foreign partnerships that are carrying on business in Albania or having income, deductions or credits for tax purposes in Albania are not required to maintain nor provide to the authorities ownership information in all cases.   Albania should ensure the availability of ownership information regarding to foreign companies with sufficient nexus to Albania and foreign partnerships carrying on business in Albania or having income, deductions or credits for tax purposes in Albania in all cases.  
Under the current legislation, there is uncertainty whether there are requirements on companies that might have issued bearer shares prior to 2008 which obligate the holders of any such shares to comply with the ownership registration mechanisms.  Albania should ensure that appropriate mechanisms are in place to identify holders of bearer shares issued under the 1992 Law on Companies.  
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.   Professional privilege in Albania is extended to notaries and tax advisors, preventing the authorities from obtaining information from them in criminal tax matters. It is unclear how the Professional privilege provisions would apply in the context of exchange of information for criminal tax matters.  Albania should ensure that domestic provisions on professional privileges allow exchange of information in line with the standard. 
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.      
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.   Professional privilege is extended to notaries and tax advisors under Albania’s domestic laws, preventing the authorities from obtaining information from them in criminal tax matters. It is unclear how the professional privilege provisions would apply in the context of exchange of information for criminal tax matters.   Albania should ensure that the scope of professional privilege is in line with the international standard. 
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.