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Macedonia’s Banking Sector Steps Up Efforts to Prevent Fraud

Skopje, Macedonia - The former Yugoslav Republic of Macedonia has been making significant progress in its preparations for European Union membership, but there are still areas that need improvement. A recent report by the European Commission highlights concerns over the country’s efforts to prevent tax fraud and harmonize its taxation legislation with EU standards.

Challenges Ahead

According to the report, while operational capacities of the tax authority have improved, effective means to combat tax fraud are yet to be introduced. The commission has also noted that a code of conduct for business taxation is still lacking.

Banking Sector’s Efforts

Banks in Macedonia are taking steps to prevent fraud by:

Strengthening their internal controls and risk management systems
Working closely with law enforcement agencies to identify and prosecute fraudulent activities

Tax Authority’s Improvement

The country’s tax authority has been improving its administrative capacity, but more needs to be done to align its legislation with EU standards. The commission has recommended that Macedonia:

Establish a code of conduct for business taxation
Strengthen its efforts to combat tax fraud

European Commission’s Stance

Despite these challenges, the European Commission remains committed to supporting Macedonia’s accession to the EU. The country is expected to continue making progress in areas such as taxation and anti-fraud measures before it can join the bloc.

The commission has also expressed concerns over the lack of harmonization between Macedonia’s direct and indirect taxation legislation with EU standards. While some progress has been made, more needs to be done to ensure that the country’s tax system is compatible with EU rules.

Conclusion

Overall, while there are still challenges ahead for Macedonia’s banking sector, it is clear that efforts are being made to strengthen internal controls and prevent fraud. As the country continues its journey towards EU membership, it will be important to monitor progress in this area and address any remaining concerns.