BiH Rectors' Conference: Tax calculation method for external associates jeopardizes universities

SARAJEVO, (Patria) - An extraordinary session of the Rectors' Conference/Board of Rectors of Bosnia and Herzegovina, chaired by Prof. Dr. Jusuf Duraković, Rector of the University of Zenica, was held today at the University of Sarajevo.

There was only one item on the agenda - a discussion on the model of engaging external associates in the teaching process, as well as the method of payment for contracts related to the development of domestic and international projects at public universities/faculties in FBiH.

After several hours of discussion among all rectors of public universities/faculties, and taking into account that the Tax Administration of the Federation has incorrectly determined the factual situation through inspection supervision in the past period, the RKBiH/RZBiH considers it important to emphasize the facts:

- The Tax Administration of the Federation of Bosnia and Herzegovina has been conducting activities to verify the operations of universities/faculties in the Federation of Bosnia and Herzegovina for a long time.
- Universities/faculties respect all legally prescribed activities related to the implementation of positive legal regulations at all levels and duly pay taxes and other obligations.
- The RKBiH/RZBiH has informed the Government of FBiH and the Ministry of Finance of FBiH about its positions and the practice of the Tax Administration of FBiH.

FINDINGS:

Upon analyzing inspection reports from several universities/faculties, we note numerous inconsistencies and possible irregularities in the procedures:

- We believe that the Tax Administration of FBiH selectively applies legal and other regulations, disregarding that universities/faculties must apply a comprehensive set of laws in their operations, especially lex specialis laws governing higher education in cantons/districts. We remind that cantons/districts are solely constitutionally competent for higher education.
- We believe that tax inspectors act differently in interpreting facts and applying regulations during inspection supervision, particularly concerning the method of calculating taxes and contributions for the engagement of external associates, the approach to calculating taxes and contributions in the implementation of international projects, as well as the taxation of work on temporary and occasional jobs, and ad hoc committees.
- We consider it unacceptable and extremely harmful to be forced to act contrary to positive regulations, and technically impossible.
- The RKBiH/RZBiH does not exclude the possibility of initiating proceedings to determine the responsibility of institutions and individuals before competent courts.
- The RKBiH/RZBiH will inform international and domestic institutions monitoring higher education and scientific development in Bosnia and Herzegovina about all the stated allegations.

- The RKBiH/RZ BiH considers the calculation of taxes at the full rate for compensation on international projects at universities/faculties unacceptable. We believe that such practice undermines the European perspective and standards of higher education and the Bologna Process.
- We emphasize that all these and numerous other activities call into question the organization of the teaching process, the mobility of teachers and students at public universities/faculties in Bosnia and Herzegovina, and cause incalculable damage to the development of the entire Bosnian-Herzegovinian society.
- We believe that such actions undermine scientific research work as the foundation for the development of any society, especially the Bosnian-Herzegovinian one.
- We point out that there are numerous other examples about which we will continuously inform the domestic and international public.
- Committed to academicism and all values arising from higher education, guided by the principle of legality, universities/faculties consider all remarks based on laws and regulations and are prepared to change their business practices, but will never allow such activities to affect the missions of universities/faculties in society.

POSITION:

- The aforementioned practices of the competent tax institutions can lead to the closure of universities/faculties as the most important substance for societal development and lead to the erosion of the prospects for young people, increasing their emigration from Bosnia and Herzegovina.
- Based on the Framework Law on Higher Education, which specifies that higher education is of special interest to Bosnia and Herzegovina, these actions grossly violate that interest, and thus the prospects of Bosnian-Herzegovinian society.
- We appeal to the competent authorities to find an optimal model in dialogue with higher education institutions, i.e., universities/faculties, in which all legal and other regulations will be respected, thereby providing a new perspective for the development of higher education and competitiveness in the domestic and international market.
- We believe that all institutions at all levels will thereby significantly contribute to the development of Bosnian-Herzegovinian society in its European perspective.