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Spring Edition, 2011 Spring Edition 2011 ALBANIA & KOSOVO LEGAL NEWSLETTER CHAMBERS GLOBAL – RANKS KALO FIRM ADVISES & ASSOCIATES TOP OF MARKET DELHAIZE Once again KALO & ASSOCIATES many of the country’s recent projects and GROUP IN $1.29 is ranked at the top of the competition by PPP deals, and has the ability to work on Chambers Global, a leading legal guide more niche issues’ relating to healthcare, BILLION DEAL and rating agency. All research con- pharmaceuticals, product liability and ducted by Chambers is done in a highly other areas. Chambers notes that clients confidential and ethical manner with a praise the firm’s “keen awareness of how cross-section of clients and members of Western companies operate”. the legal professions in the market being This is a firm that offers all interna- interviewed. tional and domestic companies excellent Chambers rates the firm as a leader legal services in Albanian, English, across the board in Albania. It is a mem- Italian and French. ber of the South East Europe Legal For more information visit Group (SEE Legal) and has an office in http://www.chambersandpartners. Kosovo. ‘It has been heavily involved in com/Global/Editorial/42170 FIRM ANNOUNCES PROMOTIONS AND REDEFINES DEPARTMENTS The firm is delighted to announce managing the intellectual property work “Limonat” promotions of two experienced lawyers for corporate clients By Kujtim Buza as Partners and two other lawyers as Jona BICA and Dorian KASHURI The KALO & ASSOCIATES team of Senior Associates. were promoted as Senior Associates. lawyers (covering a wide range of prac- Fatos LAZIMI and Anisa RRUMBU- Jona BICA will deal with banking, tice areas) provided legal advice to the LLAKU were promoted as partners. insurance, finance. Belgian company Delhaize Group S.A. Fatos is a legal expert with 15 years of Dorian KASHURI shall deal with with respect to the purchase of the Ser- experience in public and private sectors. natural resources and energy. bian retailed Delta Maxi Group. Delhaize Group SA (DELB) agreed to buy Delta He has been heading the litigation By these promotions each partner Maxi Group, Serbia’s largest food retailer, department within the firm and now will have supervisory role on various from Miroslav Miskovic’s Delta Holding covers also property matters departments: for 932.5 million Euros ($1.29 billion), Anisa has 6 years of experirnce as a • Corporate and Intellectual Property; including debt, to revive sales growth. lawyer and has been involved in mergers • Energy and Natural Resources; The transaction values the operator of and acquisitions as the head of corporate • Infrastructure, Concessions and PPPs; 450 stores in Serbia, Montenegro, Bosnia, department. • Litigation and Property; Albania and Bulgaria at 10.4 times to 11 From now on she will be also • Tax, Employment and Banking. time’s estimated 2011 earnings before in- terest, tax, depreciation and amortization, Brussels-based Delhaize said today in a ROLE OF MEDIATION REINFORCED statement. It plans to complete the pur- chase in the third quarter and Delta will AS ADR METHOD add to earnings immediately after. The Law No. 10385, dated 24.02.2011 “On family issues; and civil claims related acquisition of Delta Maxi Group is sub- mediation in settling disputes” (replacing to criminal matters where mediation is ject to mutually agreed upon and custom- the old law of 2003 on mediation) was expressly required by law. ary conditions including the approval by enacted reinforcing the role of mediation A marked improvement in this the merger control authorities in Serbia, as an alternative dispute resolution new law is that courts are mandatorily Bulgaria, Montenegro and Albania. The transaction is expected to close in the method in the spirit of EC Directives. required to invite parties to settle third quarter of 2011. This method addresses out-of-court disputes through mediation (parties are, Delhaize was advised by CMS with settlements of a wide range of disputes of course, free to refuse), where for e.g.: KALO & ASSOCIATES as legal counsel pertaining to civil, commercial, labour, continue page 2 for Albania and Kosovo. Spring Edition 2011 from page 1 effective than going to court. Albania, the minimum age of mediator • In civil and family matters where the The new law also places more is increased from 22 to 25 years old, and legal rights and interests of minors are emphasis on the regulation of the holding a bachelor degree is a mandatory involved mediator, the licen-sing and potential educational requirement. Crucially the • Conciliation is required for divorce for the withdrawal of such licence. For law also regulates situations of conflict cases this purpose the Mediator Licensing of interests and addresses how such • To address pecuniary claims in an Committee was established and the should be dealt with. amount of up to 500,000 ALL. Mediator Registry which is held with- The provisions of this new law on Imposing this procedural obligation in the Ministry of Justice. This law media-tion for the settlement of disputes on the adjudicating authorities in Albania has both tightened up and diversified are in li-ne with recent amendments should in specific situations increase the legal requirements that a mediator made to other rela-ted acts such as the the role of mediation as ADR methods, should meet to gain a licence, e.g. a amendments taking place in the Albania which are ultimately more cost and time foreign national may be a mediator in Code of Civil Procedures etc. LEGAL UPDATES PROJECT UPDATES The Taxpayers’ Advocate: additional payers who face problems and who are ALBPETROL SHA voice of taxpayers sometimes subject to unfavourable treat- The Taxpayers Advocate (‘TA’) is a ment by the Tax Administration. No news has yet been published on newly established body within the General From its first year in existence TA strategy or manner of privatisation Tax Directorate (‘GTD’). Although an is proving that its professional approach of this state owned company. internal body of GTD, TA is established towards the relevant tax administration Meanwhile in a 5-year deal with to be an independent actor (i.e. indepen- yields satisfactory results for the taxpayer. Albpetrol signed two years ago dent from the GTD and nominated by the By Aigest Milo - Associate bankers have taken over its low Minister of Finance). The mission of TA Tax, Employment and Banking Dept. production wells, redeveloping is to protect the rights and interests of the * * * and optimizing them, giving back taxpayers in their relationship with the Tax New Procedural Requirements for a percentage of old production as a Authorities. The key function of TA is to Capital Increase royalty. It seems there is no interest provide taxpayers with comprehensive Amendments have been recently in- at present in view of the depleting information and to present the problems troduced to Instruction no. 5, dated wells and assets of this company. and concerns of the taxpayers to the rel- 30.1.2006 “On income tax”, as amended, INSIG SHA evant administrative organs as well as to regarding taxation on capital increase of a After the first attempt in 2009, the ensure that taxpayers’ rights are respected company. This Instruction provides that Government of Albania intends to by the tax authorities. cash contributions made by individuals privatize all shares it holds in the According to the relevant legislation (either shareholders or third parties) not insurance sector, yet there have not this exercise is accomplished primarily originating from the company (i.e. not been any signs of interest expressed through ordering the relevant bodies of contributions from dividends distributed to initiate the privatisation process. the tax administration to carry out veri- by the company etc) that are used for the fications or investigations and through purpose of capital increase shall be sub- NATIONAL LOTTERY advising the tax authorities on solutions ject to income tax where tax has not al- This licence is still intended to be to problems faced by the taxpayers. TA ready been paid on this sum before. In offered and no changes have since is also entitled to make assessments, sug- this case the individual shall submit to occurred in terms of the initiation of gest ways to solve issues and to suggest the tax authorities a declaration certifying the tender procedures. possible changes of tax procedures. In the origin of personal income contribut- HPPs operated by Albanian addition, TA could recommend the ap- ed for capital increase (to identify that tax Power Corporation (KESH) plication of unified procedures in order has already been paid on that contribu- IFC has already initiated tender to prevent the implementation of dif- tion) and if not pay the personal income procedures to contract sub- ferent practices in cases with similar cir- tax at the rate of 10% on that sum con- consultant, and various companies cumstances. The TA is to be independent tributed. This declaration or evidence of have now been shortlisted. The final from the examination, collection and ap- the payment being made must also be offers are to be submitted in early peal operations of the Tax Administra- filed with the National Registration Cen- May. tion and, thus, such independence will tre no later than the date of the deposit of TIRANA-ELBASAN MOTOR serve to ensure that TA will not be influ- the cash contribution used for capital in- WAY enced by the structures of the Tax Ad- crease. Without either evidence the capi- A tender for this motor way (including ministration perceived as less friendly by tal increase shall not be registered. Ad- a 2-3 km tunnel) was opened with taxpayers. ditional documents certifying the value some 25 companies already having It is noteworthy to mention that ap- of the contribution and payment of per- expressed interest.
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