Concessionary tax evasion

“Tax on profit for oil should not be lower than the average of the industry, wherever it is applied. If the average tarts with 55-60%, Albania should not keep it still 50%, with the horrible favor of recognizing a series of spending that turn the profit to zero”, Brace declared.

But oil is not the only problematic sector. For the chrome concession, tax on private operators is even lower, only 10%, although they are exploiting a public asset.

“A chrome company cannot pay only 10% for its profit. And they haven’t paid even this so far, because they too have presented high spending on paper, which often have not been realized at all. All you need to do is go to Bulqize and see how those investments have not been realized. We have spoken about the tax-on-profit progressive tax. This is the case when the progressive tax should be established as soon as possible”, Brace added.

But even with these low taxes, the companies have not paid taxes, because they declare losses. According to Albpetrol, only four companies that exploit Albania’s oil resources have declared more than 1.5 billion USD of spending, but they haven’t presented their bills.

Brace says that this is another reason that makes the concessionary changes obligatory.

“The fiscal administration, including its higher levels and naturally even the Ministry which covers the responsible area, should work to stop recognizing these spending that include off-shore companies. On the other hand, they should justify every spending with regular bills with the current prices, not increased ones just to not pay the tax on profit”, Brace declared.

The official data show that since 2005, the concessionary companies have exported more than 1.6 billion USD of oil and chrome, and have paid only a minimal tax.

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