This document summarizes a case of corruption involving the Albanian Constructors Association lobbying the government to establish preferential tax levels and employment regulations for construction companies. The agreement lacked proper representation of construction companies and established taxes and duties that should be determined by law. It created an unfair monopoly for some companies, reduced competition, and led to the bankruptcy of many construction firms. This issue has caused confusion between the construction industry and tax administration for years.

1. This is a real case of a corruption and net power’s abusing by a public agency
implementing the law as it is the General Tax Directorate, and a group of interests
as it is the Albanian Constructors Association.
Few years ago, the Presidency of the Albanian Constructors Association pretending
to speak on behalf of all constructors of Albania, has made a lobbing campaign
near the Albanian Government, and as result it is reached an agreement
materializing throughout a common directive related to the taxing level of
construction companies, which consisted to the level of payment of VAT, Tax for
Profit, social insurance contribution, obligatory number of employees a
construction company must have engaged. Furthermore, here it was established a
salaries hierarchy.
Where the corruption and abusing are on this agreement?
1. It is not used a right methodology during the agreement compilation process
which would determine the participation of Construction Companies in this
Association, so the representation is missing.
2. The taxes level is established by the Law. Taxes and duties such as: VAT,
Tax for Profit, Social Insurance Contribution, or the salaries’ hierarchy
cannot be scope of an agreement between an association’s presidency and
the Albanian Government.
3. Here it is advantaged the monopole of some companies on the
construction’s field.
4. It deduces the fair competition on market.
5. It has caused the bankruptcy of a significant number of construction
companies.
Such a thing is proceeding by some years and has produced a total confusion on
the relations between the construction business and the fiscal administration.