THE LAW ON DETERMINING THE ORIGIN OF PROPERTY AND THE SPECIAL TAX ON PROPERTY MUST NOT BE IN THE SERVICE OF POLITICAL REVANCHISM

The decisions from the Draft Law do not specify which persons would be subject to controls on the origin of property and according to which criteria, which leaves the fear of political abuse by selective application of the law.

Banja Luka, 14. September 2021. – Transparency International in Bosnia and Herzegovina (TI BiH) organized a public debate / round table on the Draft Law on Determining the Origin of Property and the Special Property Tax of the Republika Srpska. The analysis of the Draft Law was presented at the round table, in which experiences from the Republic of Serbia were presented, but also valid legal solutions from the Law on Tax Procedure of the Republika Srpska and the Law on Confiscation of Property Arising from the Criminal Offense of the Republika Srpska.

The decisions from the Draft Law on Determining the Origin of Property and the Special Property Tax do not specify which persons would be subject to controls on the origin of property and according to which criteria, thus leaving fears of political abuse by selective application of the law. TI BiH believes that the property of former and current holders of public office, as well as other persons who may have been exposed to an increased risk of corruption, should be controlled, and that the law would justify the epithet of anti-corruption.

The circle of persons who would be a priority in the control of property should be clearly defined in the law itself, and should not be left to the discretion of the newly established sectors in the Tax Administration, or regulation through bylaws. Capacities must also be created in the Tax Administration that will enable the inspection of all potential taxpayers, ie. those who, according to available data, own property worth more than 300,000 KM, in order to avoid selectivity in application.

TI BiH considers that in case of adoption of the law it would be especially desirable to publish the estimated number of taxpayers / persons who will be subjected to special tax audits, and that the obligation should be established for the Tax Administration to present all data on application and effects of the law.

The draft Law on Determining the Origin of Property and Special Property Tax could also be subject to constitutional review due to the extremely high tax rate (75%), as well as due to the provisions on the obsolescence of determining the tax liability.

TI BiH notes that information on holding a public debate in Banja Luka on the Draft Law on Determining the Origin of Property and Special Property Tax was not available on the official website of the RS National Assembly where the debate took place, while on the website of the Ministry of Justice of Republika Srpska the debate is not highlighted clearly enough. This is not in the spirit of a public debate that should enable the participation of as many participants as possible. Public debate in the legislative process is not provided only for the sake of formality, but in order to really gather the opinions, criticisms and proposals of the general public.

Saopštenje za medije – 14.09.21_

Analysis of the draft Law on Determining the Origin of Property and Special Property Tax of the Republika Srpska