Legal protection, another concern for tax amnesty beneficiaries

TIRANA, April 11 – Apart from high tariffs government has set, legal guarantees that individuals and businesses making self-declarations will not face prosecution remains another concern for the Tirana Chamber of Commerce over the tax amnesty draft law. Nikolin Jaka, the chairman of the Chamber, says that although on a self-declaration basis, businesses still face the risk of facing charges under the anti-mafia law.
“Finance Minister Ridvan Bode says that although making the self-declaration, officials can carry out controls and if the declaration has not been made according to law, you lose the right to be an amnesty beneficiary,” Jaka told reporters this week.
As far as tariffs are concerned, government seems to have made a concession, saying that it will review tariffs for the legalization of real estate to 3 percent, from the initial 6 percent. Tariffs for machinery and equipment are also expected to drop to 5 percent compared to the initial 7 percent fee. The new tariffs have not been included in the final draft approved by the majority deputies of the parliamentary economy committee and are expected to be introduced as an amendment requested by the business community.
Business associations have warned that tariffs for the legalization of undeclared assets must be lower to ensure the participation of entrepreneurs in the process.
However, with the campaign for the local elections of May 9 in full gear, the ruling majority will be unable to approve the tax amnesty bill on its own because of the qualified majority of 3/5 of votes the draft law requires. The opposition has made it clear it won’t give its consent to the law ahead of the local elections.
Prime Minister Sali Berisha has warned that if the opposition does not give its consent the majority would move to approve on its own votes only the forgiveness of tax obligations and fines which is more limited than a full amnesty and excludes big businesses. The bill pardons unpaid tax obligations for individuals and small businesses until 31 December 2010. Big businesses can have their customs and tax obligations pardoned until 31 December 2008.
Government says it intends to implement a full tax amnesty, excluding only businesses connected to current and former public office holders and those whose origin of capital is not legal business.
The Finance Ministry says that the legalization of the informal businesses would produce positive results for the economy, unfreezing some USD $3 billion.