Bad news for the Albanian budget. International audits were hired to
resolve the tax conflict between the Albanian government and Bankers
Petroleum, and they decided in favor of the Canadian company.
This decision forces the government to return 57 million USD in taxes to the Canadian company, 37 of which are collected by the Albanian government.
The conflict culminated last year, when the Tax Office froze Bankers’ bank accounts, but it all really started in 2011.
A report of the National Agency of Natural Resources found in 2011 that Bankers had reported more than 300 million USD of unjustified spending, by avoiding tax on profit.
Government calculations showed that the company had avoided 57 million USD in taxes. As result, the company’s accounts froze and they threatened with arbitration. After debates, they all settled for a deal.
“Bankers” agreed to pay its obligations with installments, for 12 months. But on the same time both parties agreed to hire an auditor to resolve the conflict. They agreed that the audit’s decision would be final.
The panel of auditors made of “Price Water House Coopers” and “Navigant” published the report in which they decide in favor of Bankers.
This decision is final and as such, Albania will be forced to find a mechanism for compensating Bankers.
The government will have to give them back 37 million USD and give up from the claims for 20 million others.
This is a sum that would cause problems for the budget, since it is twice higher than the revenues’ reduction that the government published in July.
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