PRESS RELEASE – TAK collects EUR 101 million of tax debt

In a press conference held today, TAK’s Director-General Ilir Murtezaj and Deputy Director-General of Operations Nijazi Asllani presented the outcomes of activities carried out to handle tax debts, as well as other debt collection activities, including measures undertaken to seize the property of debt-owing taxpayers.

Director Murtezaj told reporters that “In addition to many objectives, the Tax Administration of Kosovo prioritizes the treatment of inherited debts. At the beginning of this year, based on a dynamic plan and following the warnings to taxpayers about their liabilities to TAK, intensive debt collection and handling activities were undertaken in accordance with the Tax Legislation. As a result of such activities, TAK for the first time since its establishment recorded a downward trend in debt, which reflected in increased revenues”.

Up to the present, EUR 101 million has been collected from the treated debt and compared to the previous year there is an increase in debt collection by EUR 30 million or 42 %. TAK will continue collecting new and other outstanding debts, with particular emphasis on collecting mandatory fines and confiscating the property of taxpayers who have outstanding debts. By doing so, TAK is fulfilling the recommendation of the mission of the International Monetary Fund, said Mr Murtezaj among others.

In addition, the Deputy Director-General of Operations Nijazi Asllani disclosed data related to the aforementioned achievements. He said that there are over 250 cases initiated for confiscation for the period January-November 2019, as well as 136 cases with concrete confiscation actions, and that there is a significant increase compared to 2018. As a result of such activities, EUR 73.5 million are being handled through instalment debt settlement agreements and compared to the same period in the previous year, there is noted an increase of EUR 40 million or 119.2%

In addition, during this conference, Mr Asllani informed the media that today are being conducted three actions for the seizure of property in three separate locations, the debt of which reaches a value of EUR 150 thousand.

The media was also informed that TAK is working on implementation of the Medium Term Action Plan (MTAP) 2019-2021 on the modernization of the Tax Administration, particularly consolidation the mandatory collection.

The reason for reforming the mandatory collection is the level of debt incurred by taxpayers and therefore the plan of the project “Consolidation of Debt Collection” has been drafted, through which TAK will provide for new procedures and approaches to improve the early-stage debt treatment process and reduce large debt stocks.

At the end of the conference, it was emphasized that TAK’s focus continues to be the increase of the level of voluntary compliance by taxpayers in accordance with the Tax Legislation of Kosovo, as well as the treatment of tax debts!