The Tax System is Going Crazy/ Businesses are Paying 10-Times Higher Profit Tax Installments

2026-03-11 10:30:26 / EKONOMI&SOCIALE ALFA PRESS
The Tax System is Going Crazy/ Businesses are Paying 10-Times Higher Profit Tax

The Tax Information System @Cats has collapsed due to a long lack of maintenance.

In the last two days alone, tax inspectors have found that the system has generated invoices for companies' Profit Tax in amounts 10 times higher than their actual liability.

Sources from the tax administration told "Boldnews.al" that the electronic system has suffered a terrible disruption to the formula that calculates monthly profit tax installments for companies.

The same sources said that, so far, at least 1,500 cases of inflated Profit Tax invoices have been identified, but this number may increase progressively due to the uncontrollable IT anomaly.

This Tax Administration information system has been without maintenance for a period of almost 6 months.

In July 2025, the National Information Society Agency (NAISA) announced the tender "Maintenance of the Billing Control Management Module for the General Directorate of Taxes", with a limit fund of 770 million lek (about 7.7 million euros).

The tender was accompanied by numerous complaints of abuses by various operators who participated in the procedure. Only at the end of February 2026, the Public Procurement Commission (PPC) allowed the contracting authority, AKSHI, to continue with the procedures until the winner was announced, a process that has not yet been completed.

But the prolongation of the procedures has created a completely collapsing situation. The company that previously maintained the @Cats Tax system had terminated its contract by the time the new tender was announced.

The Tax Administration seems to have given up in the face of technological problems, as for months, the IT system has neither been maintained nor is there anyone to provide a solution to the discrepancy.

But the situation is even more dire for businesses. Abusive overbilling due to technological problems is only the first stage of their difficulties.

What businesses risk

The Tax Information System in Albania is configured in such a way that, if businesses do not pay their obligations on time, it automatically generates late payment interest, at a certain percentage on the amount not paid on time.

Despite the @Cats system's deregulation, businesses will be forced to pay the abusive bill 10 times higher, otherwise private entities will be charged with much higher fines and late payment interest.

This situation places private companies in a "pinch situation", where on the one hand they are burdened with abusive invoices by the system and on the other hand, although it is clear to everyone, including the Tax Administration, that the invoice is inflated, businesses must pay it, since the information program automatically calculated the fines.

The situation becomes even more absurd in cases where companies, in their right, will appeal any type of over-invoicing due to the collapse of the Tax IT system.

Tax procedures in our country require private entities to prepay the entire amount of the fine before appealing its value. This means that companies will be forced to pay the 10 times higher amount incorrectly calculated by the System before contesting it.

An abusive bill 10 times higher could collapse many companies, which, in order to make the prepayment of the abusive bill, could find themselves in a significant lack of liquidity to continue their normal economic activity.

Happening now...