The law on determining the origin of property must not be the basis for political abuses and revenge

The circle of persons who would be a priority in the control of assets or risk factors should be clearly defined in the law itself, and this should not be left to the discretion of the newly established sector in the Tax Administration, or regulation through bylaws.

Banja Luka, 07. February 2022 – Transparency International in Bosnia and Herzegovina (TI BiH) reminds the public and MPs in the National Assembly of the Republika Srpska that the Draft Law on Determining the Origin of Property and Special Property Tax did not specify which persons would be subject to property origin controls and criteria. leaves room for political abuse by selective law enforcement. TI BiH believes that the assets 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 in the first place. The circle of persons who would be a priority in the control of assets or risk factors should be clearly defined in the law itself, and this should not be left to the discretion of the newly established sector in the Tax Administration, or regulation through bylaws.

The current solution envisages that the previous procedure, as an integral part of the procedure for determining the origin of property, will be conducted on the basis of risk assessment, but the Law does not explain the criteria that will guide the RS Tax Administration in risk assessment. According to the Draft Law, the RS Tax Administration will adopt a plan for controlling the origin of property according to previous procedures, and the control procedure will be initiated if in the previous procedure it becomes probable that in three consecutive calendar years in which a natural person has an increase. reported income of a natural person that exceeds 300,000 KM.

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 subject to special tax audits, and that a special obligation should be established for the RS Tax Administration to present all data on application and effects of the law. which the Proposal does not provide for.

In a public debate, TI BiH pointed out that the Draft Law on Determining the Origin of Property and Special Property Tax could be the subject of constitutional review due to the extremely high tax rate (75%), and that it is questionable whether there are capacities in the RS Tax Administration to the law applies retroactively to the period from 1992. . That is why it is important that the law clearly defines the groups of persons at increased risk, which should be a priority when checking the origin of property.

Ahead of the new regular parliamentary session, TI BiH warns that the NARS has not provided conditions for public presence at parliamentary committee sessions for almost two years since the pandemic was declared, so civil society representatives were informed before this session that their presence is not possible to prevent the spread of coronavirus. The presence of the interested public must be ensured by other preventive measures and the measure of banning the presence in the legislative body is not justified in the circumstances of relaxation of anti-pandemic measures. By removing the public from Parliament, the decision-making process closes in very narrow circles where there is no place for citizens and civil society.

Press rls-07.02.2022.