The Constitutional Court Strikes Down Penalties Law

TIRANA, May 5, 2008. The Constitutional
Court of Albania has decided to strike
down an amendment to the fiscal code that
requires from the businesses to pay 15% of
the fines imposed on them by the tax authorities
before they can appeal their case to a
higher tax authority or the court. The amendment
was approved last year amid opposition
from both the Socialist Party and business
organisations.
The Constitutional Court was forced to
release only the conclusion of its verdict
because of growing speculations about its
decision. It remains unclear on what grounds
the Constitutional Court has decided to over-
rule the amendment.
Prime Minister Berisha declared after
the decision was announced that his government
is going comply with the decision
of the court. However, Berisha warned that
future reforms are needed in the justice system.
“I don’t think that the executive is
going to take a step against [the decision],
but I would like to emphasise one thing,
since we are discussing this case; there is a
fatal decision of the court, which give all
the powers to the court and absolutely, all
the power cannot be given to the court, because
in no country in the world, the court
is plenipotentiary. But, this matter cannot
be resolved through opposing the decisions,
this matter is resolved through reforms”,
Berisha said.
The amendment was planned also, to be
part of the new draft law on the taxation procedures.
The business organisation warned
the government that they were going to appeal
the draft if it got the approval of the
Parliament. The President of the American
Chamber of Commerce in Albania, Philip
Bay, said the businesses are looking first to
achieve a solution “around the table with the
government, and not through the court”. “We
believe that the government and the Parliamentarian
Committee on Economy are going
to reflect on the Court’s decision”, Bay
said.
The latest reports show that the Ministry
of Finances is going to change the draft in
compliance with the