The Program has supported the enactment of the Administrative Court draft law, during its discussion in the parliament. In collaboration with the EURALIUS program, our experts worked intensively with all the parties, including the Ministry of Justice and the High Council of Justice to resolve differences and push forward this important component of the judicial reform in Albania. Looking ahead, the program has already aid the foundation for a joint effort with the School of Magistrates to organize training for administrative court judges and prosecutors, as well as to design software to manage administrative cases that will fit with the existing courts' case management system.

TAX ADMINISTRATION REFORM
E-services extended to all taxpayers

New IT solutions have eliminated the need for Albanian taxpayers to make multiple monthly visits to the tax offices to obtain tax forms. Downloading these forms now takes only a few clicks at the General Directorate of Taxation (GDT) website: www.tatime.gov.al. Since February 2009, the ability for taxpayers to download tax returns expanded to the entire country. Ninety three percent of all returns generated in March were handled electronically. The GDT reorganization, approved in August, 2008, consolidated 15 branch offices into 7 larger, automated regional offices. With Program support, GDT is now removing out-of-business taxpayers from manual registers and adding active ones to the automated data system, making it possible for them to e-file.

GDT committed to self-regulation

The 2008 Tax Procedures Law established an Investigation Directorate within the GDT that will conduct criminal investigations of tax evasion and make referrals for prosecution. It also created an Internal Investigation Unit, to investigate matters of employee misconduct, corruption and illegal collusion with taxpayers. The MCC Albania Threshold Program provides direct support to both units as they design manuals and investigative procedures, establish and staff an informant hotline and develop prosecution case referral guidelines. Active investigations are now underway in both organizations.

A key goal of the Program is the integration of the Albanian public institutions it creates and supports.

The MCC Threshold Program has entered a new stage of cooperation between the Government of Albania and the United States Agency for International Development (USAID). Looking back at Stage I, 2006-2008, which coincided with the mandate of this majority, I can proudly declare that the Program was successfully completed with tangible results, helping us keep our electoral promises. Together, we managed to fulfill one of our main goals: the fight against corruption in tax administration, public procurement, and business registration.

Thanks to the MCC Program and our commitment, we now have a better law and approach to business registration through the "one stop shop" ensuring greater transparency, saving time and cost in simplified procedures. Furthermore, the new online tax system guarantees transparency for both foreign and domestic businesses, reducing the opportunities for corruption in tax collection. E-procurement has been introduced in a number of central Government institutions and the Procurement Advocate has been established as an independent body to defend business rights.

Our efforts are internationally recognized. The 2009 World Bank/IFC Doing Business Survey and the 2008 Transparency International report rank Albania amongst 10 countries with the highest indicators in improving business climate and one of the best recent performers in terms of fighting corruption and increasing transparency.

Our overarching goal remains guaranteeing transparent, efficient and accountable governance as we head towards a more challenging and engaging phase. The launch of the second stage of the Program coincides with the parliamentary elections of 2009, and we will integrate the MCC objectives within our electoral program following the success of the first stage and based on the values that this cooperation generated. Stage II will streamline licensing procedures in a one-stop-shop National Licensing Center; establish Administrative Courts; create a National Planning Register to make building permit procedures more transparent; as well as expand and consolidate tax administration reforms begun under the first Threshold Program.

On behalf of the Government of Albania I would like to thank the people and government of the United States of America and USAID for the excellent cooperation, and to assure you that we will remain firmly committed to the successful implementation of all MCC projects in Albania.