The Albanian tax administration has ramped up its crackdown on businesses suspected of underdeclaring employee wages, with thousands of entities flagged based on their reliance on minimum salary declarations. The logic is straightforward: paying employees the legal minimum raises suspicions of concealed income. Yet, this sweeping enforcement raises troubling questions of fairness and impartiality, especially when the same criteria are not applied to politically connected families or businesses tied to public officials—most notably, the family of Finance Minister Petrit Malaj.
A Tax Crackdown Aimed at the Vulnerable
Over 7,000 businesses have been identified as “risky” based solely on their use of minimum salary declarations, according to the tax administration. These businesses are urged to correct their payroll declarations “immediately” to avoid audits. However, the criteria for targeting businesses have been widely criticized as arbitrary, creating a presumption of guilt without thorough investigations or evidence.
What is absent from this aggressive campaign is any indication that politically connected entities are held to the same standards. Among these could be the businesses tied to the Minister of Finance himself—a family network that has operated across Albania’s financial and auditing sectors for decades.
The Malaj Family Business Empire
Minister Petrit Malaj comes from a family deeply embedded in Albania’s financial system. His father, Limos Malaj, a key figure in both the banking sector and government-linked auditing firms, continues to lead two prominent companies, PBM and BDO Albania. These firms, known for their influence over banking audits and public-sector contracts, have long operated at the intersection of public and private financial interests.
Limos Malaj is no stranger to controversy. His firm, BDO Albania, played a central role in calculating data for the 2023 Census—a project marred by accusations of manipulated figures. The Malaj family’s businesses have also faced scrutiny for their intertwined roles, with family members simultaneously holding positions in private firms and public institutions. The Minister’s wife, Ana Malaj, previously oversaw Albania’s Credit Registry at the Bank of Albania, while his sister, Besjana Doda, remains deeply involved in the family business operations.
Double Standards in Enforcement?
If the tax administration’s logic holds that declaring minimum wages is a red flag for wage underreporting, the Malaj family businesses should logically fall under scrutiny. Both PBM and BDO Albania operate in sectors where wage manipulation has historically been a concern, and their high-profile ties only amplify the need for transparency. Yet, there is no evidence that the tax administration has subjected these businesses—or others tied to politically influential families—to the same rigorous enforcement applied to smaller, less connected enterprises.
A History of Selective Accountability
Albania’s tax enforcement has long been criticized for targeting vulnerable businesses while turning a blind eye to those with political connections. The Malaj family’s expansive business network, which includes companies linked to auditing, consulting, and telecommunication services, presents ample opportunity for deeper investigation. Yet, these entities appear immune to the aggressive messaging and scrutiny now aimed at thousands of small and medium-sized enterprises.
This perceived selective enforcement underscores a troubling pattern: the tax administration’s campaigns disproportionately affect businesses without the political or financial clout to defend themselves. Meanwhile, well-connected elites operate without fear of repercussions, even as they engage in complex financial operations that warrant investigation.
Transparency and Fairness in Tax Enforcement
To restore public confidence, the tax administration must address these inconsistencies. First, it must apply the same criteria for wage reporting enforcement to all businesses, regardless of their political or social standing. Second, investigations into businesses linked to high-ranking officials, including the Malaj family, should be made public to demonstrate impartiality.
Finally, the tax administration must abandon its presumption of guilt approach, replacing it with evidence-based investigations that target actual wrongdoing rather than creating undue pressure on law-abiding businesses.
Conclusion: A Call for Accountability
The Minister of Finance oversees a system that assumes businesses declaring minimum wages are underreporting salaries, yet his own family businesses have escaped such assumptions despite decades of operation in Albania. If the tax administration’s logic is applied uniformly, it would be impossible to ignore the need for deeper scrutiny into the Malaj family’s financial dealings.
Albania’s tax system cannot serve the public interest if it continues to protect the powerful while punishing the vulnerable. Until the tax administration demonstrates impartiality and transparency, its credibility will remain in question, and the public’s trust will erode further. The time for consistent and fair enforcement is now, and it begins with holding everyone, including the elites, accountable.