On December 9, 2022, the National Assembly of the Republic of Serbia adopted the Law on Amendments to the Law on Tax Procedure and Tax Administration. The Law was published in the Official Gazette of the Republic of Serbia and entered into force on December 20, 2022.
The most significant changes
Below we present the most significant changes to the Law on Tax Procedure and Tax Administration:
The taxpayer’s request for deferment of tax payment submitted within the deadline specified in the admonishment does not delay the initiation of the compulsory debt settlement
The amendments to the ZPPPA delete the Article that provided a limitation for the Tax Administration – the Tax Authorities will not issue a Decision on compulsory debt settlement if the deferment request of tax payment submits within the deadline specified in the admonishment until the request is decided. With the adopted changes, the Tax Authorities no longer have this limitation. If the deferment request of tax payment by the deadline is submitted, Tax Authorities can initiate the procedure of compulsory debt settlement.
The implications for the taxpayer are the increase in the tax debt during the compulsory debt settlement, the possible costs of compulsory debt settlement, regardless of the fact of the request submission, and the potential outcome of the decision on the taxpayer’s submitted request.
The duration of the ban on the performance of activities imposed during tax control
Taxpayers who have irregularities during the tax audit (goods and services are not accompanied by reliable documentation of importance for tax determination, non-payment of the daily purchases, employment of a person without an employment contract or other employment act and non-reporting of the person to the competent organization of mandatory social insurance, non-registration turnover through a fiscal cash register, an electronic fiscal device or in another prescribed manner) a ban on the performance of the activity Law imposes:
- for 15 days– if the irregularity occurred for the first time;
- for 90 days– if the irregularity occurred a second time;
- for one year– if the irregularity occurred for the third time.
The possibility of imposing a ban on the performance of certain jobs to a legal representative in a legal entity for a repeated offence
A legal representative of a legal entity may be sentenced to a fine and a measure of prohibiting the performance of certain activities if, within two years from the date of finality of the conviction, reoffends the following misdemeanours:
- failure to submit a tax return, failure to calculate, and failure to pay taxes;
- failure to submit a tax return, calculation but non-payment of taxes;
- submitting a tax return, but not paying taxes and
- failure to submit a tax return in prescribed cases not to carry out self-taxation, or by order of tax control.
Therefore, the legalisation amendment, which ensures the possibility of an additional imposition of a prohibition measure with a fine applied exclusively to returnees in the commission of the misdemeanours.
The prohibition measure can be imposed for six months to three years.
