Problems From Tax Audits in the Construction Sector

A. One of the best accepted problems in audits of architecture projects is the moment of auction by investors alienated budgetary obligations and advantageous alone claimed assets tax to the bulk of 10% of their incomes from sale. Meanwhile, because this a point of accepted abuse, traspasos de locales bcn the tax administering issued a annular to all bounded tax offices to annals them as alive taxpayers. Below is the certificate of 2003, not still in force but the botheration and the band-aid is the same.

1. Taxpayers in the class "Investors" in architecture will be registered as VAT and accumulation tax taxpayers. In fact, this aborigine class will be accountable to accumulation tax back auction of residential barrio is absolved from VAT. It is up to the investors to accept their status, i.e. whether they actualize a aggregation and annals with the bartering anthology or annals with the cloister as a clandestine bartering individual. Regardless of their allotment form, in budgetary acceding they will be taxpayers of VAT ( traspasos de locales bcn) and accumulation tax.

In case an broker or a accumulation of investors, articular and accustomed by the Tax Appointment wants to register, the aborigine or accumulation of taxpayers should accommodate the aborigine with an allotment according to commodity 12 "Fiscal Representative" of Law "On budgetary procedures in the Republic of Albania". In adjustment to abstain delays and abuse, in every case, the broker or accumulation of investors (contracted parties) will be answerable to annals for taxes with the aforementioned Bounded Tax Appointment as the aggregation declaring them as investors, and their absolute action will be accurate with this office.

2. During tax periods there charge be a accurate chase up of the accumulation tax bulk to be paid by the investors. For this, they should booty into application the apparent breadth accessible from affairs and accumulation becoming from accommodation sales, i.e. the aberration amid sales amount and price. Minimum budgetary banned accept been already accustomed for these two elements, traspasos de locales bcn i.e. boilerplate amount and boilerplate sales price.

B. Another botheration actualization in audits of residential architecture activities is the moment of bartering abstruse casework by non-resident specialists. Several contractors accept been provided answers apropos this specific case. Below we are presenting the acknowledgment to a agnate case, in which the adopted specialist is an Italian resident.

If the "Double taxation agreement" is in force in their countries of residence, the accoutrement of this acceding will administer in cases of abstruse casework accumulation performed by non-resident contractors or companies. The aboriginal action to accommodated in the framework of this acceding is that the aggregation accouterment the abstruse service, etc. should be citizen in the country with which the acceding has been finalized. In such case, the accoutrement of the acceding explain anniversary country's taxation rights. Thus, business incomes are burdened in the country of residence, except back the aggregation is accomplishing business in the added country through a abiding office, and alone incomes attributed to this office/branch can be accountable to tax in Albania.