Tax Gap (Missed Taxes) in Kosovo and Albania, 2014

Tax gap (missed taxes) is a sum of money that misses from the state budget. The study comes as the product of experts of the AL-Tax Center that pointed to the tax gap evaluation, considered as a difference between taxes that should go into the state budget (theoretically) and the taxes and fees that are actually collected in fiscal year 2013. This document is a work in group in a cooperation with some fiscal studios in Albania and countries of the region.This study presents three parts connected to the tax gap evaluation. At the beginning of paper are presented concepts and statistical information for the results and methodology. In the second part, in the paper are presented statistics of the tax gap for Balkan countries. In third part is presented the data and calculation of tax gap in Kosovo and Albania. In this publication for the second time, the paper is more oriented toward the output and productivity of tax administrations in Kosovo and Albania. The evaluation of tax gap may result in a deviation errors to 5 percent, based on the use of many different sources. A summary of the methodology involves assessing the tax gap for the most important taxes in the actually tax system. The notes and revisions to this result are welcomed by businesses, experts, scholars and academic staff, and interested parties to achieve the most accurate assessment possible based on the typical methodology and data correctly