Tax Administration of FBiH conducted 217 inspections and discovered 61 undeclared workers

(Patria) - As announced, the Tax Administration of the Federation of BiH yesterday, 05/21/2020, conducted 217 inspections, so-called operations, in the Federation of BiH, which included taxpayers engaged in construction, baking, trade, hospitality, and other service activities.

The goal of the inspections was to verify compliance with the Law on Fiscal Systems and the employment of undeclared workers. In these inspections, Tax Administration inspectors checked 822 employees, discovering 61 undeclared workers, 36 taxpayers who did not issue fiscal receipts, 12 taxpayers who did not have a fiscal device installed, and 12 business premises operating without a work permit from the competent authority.

Due to the identified irregularities: employment of undeclared workers, non-recording of sales through fiscal devices, absence of a fiscalized fiscal device, and operating without a permit, 19 business premises were sealed, and in 75 inspections, misdemeanor orders were issued with a total of BAM 230,400.00 in fines. Taxpayers with identified irregularities are urged to align their operations and comply with the laws. If irregularities are found again in future inspections of these taxpayers, they will be subject to a protective measure of a six-month ban on conducting business activities.

The Tax Administration of the Federation of BiH informs taxpayers that business premises sealed due to identified irregularities during inspections will not be unsealed immediately after the identified irregularities are rectified, as was the case previously, due to the current situation caused by the COVID19 pandemic and the reduced number of inspectors. The Tax Administration thanks all taxpayers who duly fulfill their tax obligations and calls on all taxpayers to fulfill their obligations in a timely manner, to voluntarily declare and pay them, to report every employee, and to operate in accordance with tax and other valid regulations, as this is the best and safest way of doing business.

"We call on taxpayers to use their money for business improvement, investments, development, for paying employee salaries, and not to spend hard-earned money on paying fines and interest. The Tax Administration will assist taxpayers who show a willingness to fulfill their tax obligations in every way and will demonstrate its determination to take all measures against those who wish to avoid their obligations, thereby directing them towards lawful conduct. The Tax Administration wishes to be a partner to taxpayers and to build transparent relationships based on valid laws.

The Tax Administration calls on all workers working undeclared to report this to the Tax Administration. Only in this way will you be able to exercise your legally guaranteed rights: the right to healthcare, the right to pension and disability insurance, and other rights that belong to you based on employment. Dear workers, especially young people, this is your homeland, and you should stay in it and be happy, not disenfranchised, humiliated, and exploited. The Tax Administration calls on all citizens to report their knowledge of illegal business operations, i.e., non-compliance with tax laws, to the Tax Administration. With your reports, you are on the path of good, justice, truth, and helping your homeland, and these are the highest universal values – be part of universal values and report to the Tax Administration all those who operate illegally. Your response is not "snitching." Those who call it "snitching" do not wish well to you, your neighbors, and our homeland, and they approve of the illegal enrichment of individuals," the Tax Administration announced.

Furthermore, the Tax Administration calls on all accountants and auditors to report any illegal actions related to the avoidance or non-payment of public revenues by taxpayers for whom they perform activities. It is your duty and responsibility to act in the public interest and in accordance with professional standards, to protect yourselves and the profession you practice. Be an ally of the Tax Administration in the fight against illegal business operations.