EC: Tax Amnesty, Opportunity for Money Laundering
The European Commission has reacted over the government's initiative for tax and criminal amnesty, listing a number of reasons, Scan TV reported on Tuesday.
In a recent report, the EC underlined that the necessary consultations were not made before the submission of the draft law to the parliament and that the draft lacks the necessary assessment of the assets that will be legitimized and the revenues that will to be generated by this legitimacy.
In its report, the Commission said that for Moneyval it is unclear how "the Anti-Money Laundering Law will be implemented in the context of such an amnesty".
The report also noted that the bill "would create a great opportunity for tax evaders and money launderers." The inclusion in the law of persons who do not have Albanian citizenship, but have businesses in Albania is also seen as a concern. The Commission is also critical of the criminal impunity of those who have hidden property or the investigation that will follow the amnesty. It is also emphasized that, no guarantee is given that after the tax amnesty, the so-called "Year Zero", the system will ensure the proper implementation of fiscal legislation so that the practices of tax evasion stop.
While, the EC suggested that Albania should build a professional tax administration which would block the possibility of money laundering and corruption.
However, the approval and further discussion of this draft law was postponed by the Parliamentary Committee on Economy until September, while earlier there were criticisms from the International Monetary Fund, Moneyval, interest groups such as the banking sector and chambers of commerce.