background image
13.1. GAAR and General Anti-Avoidance Measures

A general anti-avoidance rule was introduced in Albania effective from 1 January 2019, which allows tax authorities to disregard an arrangement or a series of arrangements which are made to circumvent the principles of tax laws, do not reflect the economic reality, are not genuine or not made for valid commercial reasons, or are undertaken for the purpose of obtaining a tax advantage. Tax authorities may use alternative assessment methods to recharacterize the transactions. However, the burden of proof lies with the tax authorities to prove that the transaction was abusive.