Fiscal amnesty application forms issued

TIRANA, May 12 – One month after the Democratic-led majority approved a partial fiscal amnesty in Parliament, the ordinance by Finance Minister Ridvan Bode on its implementation procedures has been issued and immediately published in the Official Gazette. The ordinance also contains the sample application forms which citizens and businesses can complete at banks, as well as tax and real estate offices. Under the law on “the legalization of capital and the partial forgiveness of tax and customs debt,” individuals can legalize undeclared amounts of money at any bank against a 3 percent tariff. The forms will be made available at all 16 banks licensed by the Bank of Albania. The ordinance also provides details on the forgiveness of tax obligations and reassessment of real estate. The bill approved ahead of the May 8 local elections without the opposition’s consent pardons unpaid tax obligations for individuals and small businesses until December 31, 2010. Big businesses can have their customs and tax obligations pardoned until December 31, 2008. Under the approved bill, citizens and businesses are urged to take advantage of the tax pardon to declare their unpaid taxes and hidden assets before harsher rules are imposed. Only businesses connected to current and former public office holders and those whose origin of capital is not legal business, i.e. criminal activities and trafficking, are excluded from the law on the “legalization of capital and the pardon of part of tax and customs debts.” The law includes: – Legalization of monetary amounts under a 3 percent tariff for citizens and small businesses until December 31, 2010 – Reassessment of real estate under a 1 percent tariff for citizens – Forgiveness of all unpaid taxes for citizens until the end of 2010, including unpaid taxes for cars and traffic fines – Forgiveness of customs duties for imported cars until the end of 2010, along with fines and interest rates, provided 50 percent of the customs principal is paid – Forgiveness of electricity bills for people in need until the end of 2006 – Forgiveness of drinking water bills for household consumers until the transfer of shares to local government units, but no later than the end of 2010 – Small business taxes until the end of 2010 will be forgiven – Self-employed citizens will have their social and health insurance fines and penalties forgiven until December 31, 2008 – Small businesses can also have their fines and penalties for their employees forgiven until December 31, 2010 – Small businesses which have installed cash registers until February 28, 2011 will have their fines forgiven – All companies possessing real estate and machinery below their market value in their balance sheets can reassess them at 3 percent and 5 percent tariffs, respectively. – Businesses will have their tax and customs debts forgiven until December 2008. If they pay 30 percent of the principal for 2009, they have their fines and penalties pardoned. If they pay 50 percent of the capital for 2010, they have their fines and penalties forgiven as well.