TIRANA, April 13, 2010     Tax inspectors from the General Directorate of Taxation (GDT), prosecutors and representatives of the Financial Investigation Unit are undergoing a week-long training course on financial investigative techniques for detecting criminal tax evasion.  The course is being taught by three representatives from the U.S. Internal Revenue Service (IRS) through the Millennium Challenge Corporation Albania Threshold Program II (MCCA2), administered by USAID.  GDT Director General Artur Papajani and USAID Mission Director Joseph Williams participated today at the opening of the course.

GDT Director Papajani spoke of the close partnership with the Millennium Challenge Program during the past three years, during its stage I and now under stage II, to modernize the tax administration.  He described the efforts GDT has undertaken to improve taxpayers’ services, including the introduction of tax e-services, the establishment of the tax corruption and tax evasion denunciation system, and the two newly-approved initiatives by the Parliament: the Taxpayers Advocate as a guarantor of taxpayer’s rights, and the Tax Council as a consultative forum on tax procedures with the business community. 

Mr. Papajani also noted how the introduction of audit selection based on risk analysis and better collections and criminal investigations have improved tax law enforcement.

“This training is part of our efforts to strengthen the professionalism in the tax administration, and put in place fair and transparent practices under our overall goal of fostering a tax system based on voluntary compliance,” said the GDT Director.

The USAID Mission Director expressed appreciation for the work of the GDT anti-corruption internal investigation unit and the Tax Investigation Directorate to establish transparent and efficient rules and procedures, as well as their commitment to adopt investigation techniques based on best U.S. and international practice.

“The goal is not to convict taxpayers of tax evasion,” said Williams, “But to fund the government in accordance with the law, in a manner that fosters a level playing field for all businesses in the marketplace. This goal can be accomplished through voluntary compliance.  We convict individual taxpayers of tax evasion in order to influence and motivate all taxpayers to comply voluntarily.”

The second stage of the MCC Albania Threshold Program (MCCA2) is a two-year,  $15.7 million agreement between Albania and the United States, funded by the Millennium Challenge Corporation (MCC), and administered by USAID, which aims to strengthen the rule of law, reduce corruption, and increase public oversight, thereby improving the business environment in Albania through IT solutions and technical assistance.