At issue was whether a payments for an intra group loan guarantee was deductible. In 2008 an agreement was concluded between Verbund AG and the former Albanian Ministry of Economy, Trade and Energy, with the object of construction, operation, maintenance and transfer of the project of a new hydropower plant in Ashta. Based on this agreement, the local company Energji Ashta received a loan in the amount of 140 million euros from two Austrian banks. Having no assets to guarantee the loan, the foreign banks have accepted guarantees for the fulfillment of obligations by Energji Ashta from two group companies EVN AG and Verbund AG. The guarantee for Energji Ashta was made against a commission of 2% of the disbursed amount. Following a tax audit Energji Ashta was informed that the commission paid to EVN AG and Verbund AG would not be allowed as a deductible expense. Not agreeing with the above decision Energji Ashta appealed. Judgement of the Supreme Administrative Court The Court set aside the assessment of the tax authorities and decided in favor of Energji Ashta. Excerpt “In the dispute under trial, the plaintiff [Energji Ashta] essentially opposes judicially, the non-recognition as a deductible expense of the credit commission. It turns out that “non-recognition of the credit commission” is not materialized in the act/action of the tax administration, from which it has been derived or has created legal consequences for the plaintiff. As the courts of fact rightly reason, the opinions of tax inspectors or the Tax Appeals Directorate do not constitute the official position of the public body, much less produce consequences for the plaintiff. In the conditions where the facility (hydropower plant) is in the investment phase and has not yet produced tax effects for the plaintiff, the latter can not challenge the still unborn tax liabilities which are not based on notice concrete estimates.” Click here for other translation ...