How HDZ BiH privatized the Tax Administration Office in SBK

(Patria) - For a considerable period, it has been evident that HDZ BiH, led by Dragan Čović and Marinko Čavara, President of the Federation of BiH, through party-affiliated cadres, is "privatizing" the Tax Administration of the Federation of BiH in the area of SBK, claim several businessmen from that area.

The Tax Administration of the Federation of BiH is organized at two levels: the Central Office and cantonal tax offices with associated tax branches.

"The Cantonal Tax Office in Novi Travnik (Cantonal Tax Office SBK) is managed by Ljupko Cvitanović from Novi Travnik, an HDZ cadre. Ljupko Cvitanović has jurisdiction over all departments within the cantonal tax office and jurisdiction over all tax branches in the municipalities of SBK. Although employees of the Tax Administration of the Federation of BiH are supposed to act equally and according to the law, the same for all taxpayers, this is not the case in the SBK area. It is common for taxpayers close to HDZ, and therefore to Ljupko Cvitanović, to have a more favorable position compared to other taxpayers. According to available data, the largest number of legal entities for organizing games of chance – betting shops – are registered in the SBK area. All betting shops registered in the SBK area, as well as throughout the Federation, are indirectly owned by HDZ," state businessmen who testify to the conduct of the SBK Tax Office. 

They further state that betting shops, in addition to minimal levies defined by the Law on Games of Chance and the Law on Income Tax, have maximum protection from the Cantonal Tax Office in Novi Travnik, headed by Ljupko Cvitanović, who is family and related to some betting shop owners, and perhaps a hidden owner.

"In addition to betting shops, all universities registered to provide higher education services, such as the University of Vitez (a constant debtor facing bankruptcy) and CEPS in Kiseljak, which are under the patronage of HDZ and serve to educate Croatian political cadres, also enjoy maximum protection. Ljupko Cvitanović is not the only HDZ cadre in a leading position in the Cantonal Tax Office. Besides him, the Department for Compulsory Collection is managed by Jela Šušnja from Busovača, the common-law wife of Nikola Grubešić, the long-time president of the cantonal board of HDZ BiH ŽSB and former Minister of Health of SBK, while the Department for Inspection Supervision is managed by Igor Pavlović from Bugojno. Control over the management of these positions allows HDZ to protect and strengthen its businessmen in the SBK area by letting many things slide, while on the other hand, other businessmen are scrutinized for every detail with the aim of bringing them to ruin," claim well-informed sources.

According to the last census, in the SBK area, there are 78.3% Bosniaks, 18.3% Croats, 1.2% Serbs, and 2.2% Others. Despite these figures, Croats in SBK manage the most significant political positions in the cantonal government and other federal institutions in the SBK area, one of which is the Tax Administration.