Acta Universitatis Danubius. Œconomica, Vol 9, No 3 (2013)

Abstract

This document provides a brief description of the work in the field of taxation and efficiency in execution of Tax Administration of Kosovo (TAK), inspired by my work in this institution. This work presents the systematic connection of taxpayers, the Tax Administration of Kosovo (TAK) and revenue growth within a 12 year period. TAK work effect is conditioned by the level of the staff engagement which leads the tax policy, honest engagement of tax officials and effective enforcement of tax laws based on international best practices. This means that countries that have promoted European Union tax rules have significantly gained better working practices but also collecting the most revenue without applying penalties or closure of businesses. This study examines the short-and long-term effectiveness of TAK. We have found complementarities tax laws of the Republic of Kosovo with EU rules, implying a positive outbreak of their administration. This paper focuses on presenting positive sides as well as opportunities for a greater engagement to a general and dynamic framework for accountability and expected results in a short term. It also treats the policies that are directly and strongly incorporated in the work of TAK. Reducing of the risk of tax evasion, full integration of electronic payment system (E-banking) of taxpayers, the successful realization of the pilot project for the establishment of electronic files is a challenge for TAK. Low level of economic integration and political risk of the north of the country are the two elements that have a negative impact on the strength and the will of businesses to pay on the one hand and the effect of collecting revenue from TAK on the other side.