Business concerns over electronic declarations

Business concerns over electronic declarations

Business concerns over electronic declarations the following are some of the problems that businesses pose regarding electronic representations:

By law, businesses must file taxes electronically on the 14th of each month, while they must submit sales and purchase books electronically on the 5th of the following month. Companies complained that this is not a sufficient period to collect all the invoices for their activities. In some specific cases, such as those with branches located in several cities in Albania, this issue becomes problematic. This problem is seen in the requests made by entities under the DRT for bookkeeping as they fail to declare in time all invoices in the books.

The electronic declaration procedure requires a certain level of knowledge in information technology, especially regarding software packages such as MS Office. Employees of many businesses, especially those outside Tirana, have little such understanding. Business representatives said they need more training on the electronic tax filing procedure.

Businesses have complained that the electronic declaration system often does not work fully. More specifically, this concerns the sending by this system, via e-mail, of a message confirming the completion of the electronic submission of a tax return. In some cases, businesses do not receive this confirmation message.

There are cases when, although they have received the electronic confirmation message for the successful completion of the electronic submission procedure for a tax return, this action does not appear in time in the GDT database. This situation often leads to conflicts between businesses and tax officials over whether an electronic declaration has been made. This may result in unfair fines on companies, even though they have filed the tax return electronically.

The electronic filing system does not allow businesses to change their tax returns if they have made a mistake in a tax return they have already filed. This option is, in theory, in the electronic declaration system, which is accessed through the GDT website but has not yet entered into operation.

Some businesses still cannot view their tax liabilities status online, the so-called Tax Liabilities File. This makes it impossible for them to check if their electronic declaration has been registered in their account.

GDT servers are sometimes overloaded and do not allow taxpayers to perform the electronic declaration procedure at a particular time. In addition to books, all other business forms can be uploaded and sent with any browser: Explorer (old), Mozilla, Chrome, etc. When it comes to sending books, only Internet Explorer should be used. And exactly Explorer in versions 6 and 7. This, as the latest versions, 8 and 9, are not suitable for D.P.Taxes servers. The problem arises that Explorer 6 and 7 are only functional in the Windows XP package.

In contrast, the Windows 7 package does not accept these versions of an explorer because it considers them old for its operating system. After all, DP Tatimes servers do not work even with time.

Advantages of electronic declarations

Most tax administrations face the issue of minimizing administrative costs. The problem for emerging and transition tax administrations is their limited financial resources. Most of these tax administrations operate with a costly manual system and partly with electronic systems with inefficient processes. Despite its shortcomings, the current electronic system is a significant improvement compared to the manual method, eliminating the use of books and other documents manually.

The main advantage is tax evasion prevention as every purchase and sale invoice is already declared, thus influencing tax revenues in the state budget. Through the reports provided, it is easy to distinguish the verification of taxpayers who make false declarations. Tax inspectors save time in checking tax returns, thus increasing efficiency at work. Avoiding direct contact with the tax administration businesses save time because they do not have to go to the tax offices to take action, and the time to perform this service through banks is shortened. Electronic declarations are fast and straightforward to make.

Businesses are provided with a personal code of their own, which they can change at any time and can consult the data that the general directorate has for companies and if a check or an update has been made. Declarations can be made at any time, making taxpayers have more time available, while the official working hours had to respect the official working hours.

Security in the declaration and prompt confirmation by the tax administration via an e-mail that the order has been confirmed. Reduce errors as there is less chance of misusing documents or writing something in the wrong place. Mathematical operations and the transfer of data from statements that are related to each other are done automatically.

Payment can now be made electronically with the pay system. All electronic statements are stored to create an accessible database at any time by the entity. The electronic declaration location does not matter as taxpayers can make the declaration at the office, at home, or at an internet center. (Litherland. Neal, 2012)