Kosovo: PTK decreases profit

Prishtinë, May 15, 2006 – According to Kosovar daily Lajm, the Post and Telecomm of Kosovo (PTK) has manipulated its tax declaration several times in 2005. The Kosovo Tax Administration ordered an audit due to its conviction that the tax law was violated. If this turns out to be the case, PTK will have to pay a fine of € 2 million. The first manipulation deals with PTK’s € 15 million at Credit Bank Pristina, a sum which PTK declared as having been spent.

“Declaring the sum spent is a violation of tax. The case took place in 2006; hence, the sum cannot enter the balance of 2005. According to the law, the tax administration does not acknowledge such loss unless it is proven by court. Further yet, six months have to pass once the court declares them as being lost,” stated a tax administration official.

The second manipulation is regarding the budgetary position of the Additional Pension Fund. PTK pays more than the usual 5%. Hence, € 15 million were withdrawn from profit.

“This is a violation of law especially for the funds accumulated during 2002, 2003 and 2004. Only the payments for the year 2005 [when the new law was approved] can be taken from profits,” said the expert.

The third manipulation concerns the means of amortization. In 2004, PTK declared that the amount of amortization reached € 16 million. For 2004, this amount rose to € 20 million. “This took place due to an audit conducted by a foreign company. It is understandable and acceptable for a company to raise the value of assets for the sake of business. However, as far as taxes are concerned, this increase has no value,” said the expert for Lajm.