Arbitration Court rules against Albania and in favor of Bankers Petroleum

The verdict says that the government has unrightfully taken this money from Bankers through the tax system, and now they have to pay them back.

The decision of the Paris tribunal concludes the matter with Bankers, started 2 and a half years ago, but with a high price for the budget.

At that time the National Agency of Natural Resources audited the balances of Bankers and concluded that the company had artificially increased their expenses with 300 million USD, in order to pay fewer taxes.

By the end of 2015, the General Tax Directory seized the accounts of Bankers and asked them to pay 75 million USD, fines included. The company refused, suing Albania to the arbitration court.

After many pressure, the government and bankers reached a compromise in 2016. The company should pay only the money estimated by the tax office while the government admitted hiring foreign independent experts to audit the conflict.

The parties chose the giant Pricewaterhouse Coppers, which decided in favour of Bankers. The Albanian government didn’t accept it and continued the battle in the arbitration court.

This is the second time that the Albanian budget receives a hit from the international court. One month ago the Arbitration Court in Strasbourg ruled that the government should pay 13 million USD to repay the owners of an apartment building constructed by the father in law of Lulzim Basha, the Democratic Party leader, in Vlora.

The Albanian taxpayers have been forced to pay 73 million USD just within a month.

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