Court again prohibits RS from forced collection from Indirect Taxation Authority accounts

(Patria) - The Court of Bosnia and Herzegovina has temporarily prohibited Republika Srpska for the fourth time from forcibly collecting a multi-million debt from the Indirect Taxation Authority (UIO) of BiH.

The Head of the UIO BiH Department for Communications and International Cooperation, Ratko Kovačević, confirmed that with the latest decision, the enforcement proceedings have been postponed until March 11 next year.
RS is trying to collect the debt from the UIO based on the BiH Court's verdict of May 7, 2015, which obliged the authority to pay that BiH entity 15 million KM plus default interest due to the illegal distribution of indirect tax revenues for 2009 and 2010, i.e., more than 30 million KM.

He also recalled that the Authority proposed to the BiH Court to issue a new enforcement decision in which it would determine that the enforcement of the mentioned court verdict from the UIO's single account is inadmissible, and that enforcement be ordered through the single treasury account of BiH via the Budget of BiH Institutions from funds allocated for the execution of final court decisions.

Kovačević also recalled that the UIO proposed that the debt to RS be repaid during the daily distribution of funds, but the Management Board of the UIO BiH did not accept this.

In 2011, RS sued the UIO seeking compensation of 52.97 million KM due to the distribution of revenues collected from VAT for 2009 and 2010 to the detriment of RS. After this debt was paid, RS withdrew the lawsuit for the principal debt but continued the proceedings in court to collect default interest in the amount of about 15 million KM and won that dispute.