Albania will now hold ‘consultations’ about its controversial plan to grant a fiscal amnesty to holders of illegal wealth – which the European Commission has sharply queried, BIRN has learned from a source.
Albania Prime Minister Edi Rama talks with the Minister of Finance Delina Ibrahimi at a parliamentary session. Photo: LSA
The Albanian government has sent an “invitation for consultations” to business representatives on its controversial draft financial amnesty law, announcing a conference in the presence of Prime Minister Edi Rama in Tirana on July 15, according to a source from the organizations invited to the “consultations”.
“Under the patronage of the Prime Minister of Albania, Mr Edi Rama, the Ministry of Finance and Economy is pleased to have you participate in a public consultative meeting within the framework of the approval of the draft law ‘On Fiscal and Criminal Amnesty for the subjects of the Voluntary Declaration of Wealth,’” the invitation says.
“Given the importance that this draft law represents for the economic development of the country, we would greatly appreciate your presence,” the invitation reads further.
The European Commission has expressed serious concerns about the Albanian government’s plans to allow both Albanian citizens and foreigners to legalise money that was allegedly obtained through tax evasion, smuggling or tax fraud, on the condition that they pay a tax on it ranging from 5 to 10 per cent of the declared amount.
Beneficiary entities can declare up to 2 million euros per family and will automatically benefit from an amnesty from prosecution for crimes committed from the creation of this wealth.
Critics of the proposal have said they suspect that organized crime money, from drug trafficking or human trafficking, will also be able to be declared as business profits in terms of tax evasion and therefore legalized instead of confiscated.
The European Commission expressed its concerns about the initiative last week to the Albanian government during the 13th meeting of the Subcommittee for Trade, Industry, Customs and Taxes between the EU and Albania held on June 29 in Brussels.
“The commission highlighted serious concerns about the current draft law on fiscal amnesty. It would weaken Albania’s anti-money laundering controls while doing little to enhance the tax administration’s ability to improve future compliance with tax requirements,” the press release said.
“Because non-tax residents, including Albanians living in the EU or the Western Balkans, fall within its scope and are required to import cash in order to benefit from the amnesty, the current draft of the law raises serious concerns for EU member states- and other partners, as well as a substantial reputational risk for the country,” it added.
Source link: balkaninsight.com
