Gambling Organizers: Tax Administration Pressuring Private Bookmakers, Bypassing Lutrija BiH

Private gambling organizers claim that in recent months they have been under strong pressure from the Tax Administration of FBiH. Inspectors are frequently inspecting the branches of private bookmakers. The bookmakers believe this is the authorities' response to them because they protested against the new government law on gambling. The inspection controls are intended to silence them.

- This is repression and pressure from the Tax Administration on us because we are vocal in the fight against the new government law on Gambling. But we stand by our position; if the government's law is adopted by the House of Peoples of the Parliament of FBiH, all private, domestic gambling organizers in the Federation will be shut down. Thousands of people will lose their jobs - the private bookmakers believe.

- The new government law provides for multiple taxation of private bookmakers. This would drive us into the red. Players would 'move' to online bookmakers, leading to an expansion of the grey market... The new government law on gambling would be the end of business for all of us. We have protested against such a Law - the private bookmakers add.

While inspection controls of private bookmakers are ongoing, inspectors are bypassing the branches of Lutrija BiH. And there, the private bookmakers believe, politics has interfered. Inspectors would have every reason to inspect the branches of Lutrija BiH as well. Out of 167 branches of Lutrija BiH, fiscal cash registers have only been installed in a few of them. Private gambling organizers have them in every branch. By not installing fiscal cash registers, Lutrija BiH is violating the Law on Fiscal Systems in FBiH, while the Tax Administration is violating the Constitution of the Federation by not sanctioning such business practices. This institution has not ensured equal treatment for all legal entities.

- The Law on Fiscal Systems, Article 4, Paragraph 1, clearly defines that at each payment point, the organizer must have a fiscal cash register and issue fiscal receipts for services rendered. However, while private organizers have a fiscal cash register in each of their 2,550 branches and issue fiscal receipts, Lutrija BiH does not have one in any of them, which can be verified on the ground by simply paying for a ticket - the private bookmakers warn.

- It is therefore evident that gross violation of the Law on Fiscal Systems by Lutrija BiH has been occurring on the ground since 1 January 2010, when the Law on Fiscal Systems came into effect, and an even grosser violation of the Constitution of FBiH by the Tax Administration of FBiH and its competent Federal Ministry of Finance, headed by Minister Jelka Milićević, who allow the Law on Fiscal Systems to apply to private bookmakers but not to Lutrija BiH.

The Tax Administration of FBiH confirmed to Patria that Lutrija BiH was not subject to partial inspection audits in 2016.

- Lutrija BiH was the subject of comprehensive inspection audits, based on which Decisions on additionally determined obligations were made in 2008, 2012, and 2013. A new procedure is currently underway, which is pending a decision by the second-instance body of the Federal Ministry of Finance - is the response from the Tax Administration of FBiH.

The Tax Administration also confirmed that Lutrija BiH does not have fiscal cash registers in all its branches. This company has five installed fiscal devices at the legal entity's headquarters. The Tax Administration of the Federation explains that Lutrija BiH received a statement from the Federal Ministry of Finance that it can record revenue in a lump sum.

Private gambling organizers do not accept such an explanation.

- It is impossible for only Lutrija BiH to be exempt from this obligation, because the Law on Fiscal Systems, Article 5, Paragraph 3, states that the Government of FBiH can exempt only the entire activity from the obligation of fiscalization by Decision, and not just a specific business entity individually - explain the private bookmakers, writes Patria.