President favors “economic patriotism”

President Boris Tadic said that legal regulations are needed to prevent large Serbian companies using their off-shore units to avoid paying taxes in Serbia. “There is a moral and economic problem, and every other kind, when a company works in Serbia, makes profit in Serbia, and taking into consideration our citizens and market, is sold in countries where there are off-shore companies registered, and then taxes are paid to that country and the profit goes to banks of those countries." President favors “economic patriotism” "That has happening in the past, in the times of other governments, the government of Vojislav Kostunica, during which damage was done to the country,” Tadic over the weeked repeated the message he sent while visiting Cyprus earlier this week. Tadic, however, did not specify who he was talking about, but was most likely speaking about the sale of Delta Bank, said reporters. The bank belonged to Delta Holding owner Miroslav Miskovic. Delta was sold in February 2005 and is now in the ownership of Cyprus-based offshore company Hemslade, and the money from taxes ended up in that country. “I think that the government needs to look at all the possibilities of legal changes that respect European regulations and rules, in order to remain within the framework of EU standards of economic functioning, economic freedom of the citizens, which is in the sector of human rights. As president, I support a recommendation of this kind. It's a good I'am not warning, yet,” Tadic was quoted as saying. Two companies building the most in Serbia are Delta and MPC. Both of them do not have headquarters in Serbia. They are only registered here while the owners are offshore companies in Cyprus and Holland. In this way, everything they have purchased in Serbia is formally in the ownership of foreign companies. Even though this is allowed according to the law, the Serbian budget loses millions from such activity. Since most of the property is owned by foreign offshore companies, if they decide to sell one day, they will not be paying any taxes to Serbia, even though the property is “worth billions”. Boris Tadic (Tanjug)

President favors “economic patriotism”

"That has happening in the past, in the times of other governments, the government of Vojislav Koštunica, during which damage was done to the country,” Tadić over the weeked repeated the message he sent while visiting Cyprus earlier this week.

Tadić, however, did not specify who he was talking about, but was most likely speaking about the sale of Delta Bank, said reporters.

The bank belonged to Delta Holding owner Miroslav Mišković.

Delta was sold in February 2005 and is now in the ownership of Cyprus-based offshore company Hemslade, and the money from taxes ended up in that country.

“I think that the government needs to look at all the possibilities of legal changes that respect European regulations and rules, in order to remain within the framework of EU standards of economic functioning, economic freedom of the citizens, which is in the sector of human rights. As president, I support a recommendation of this kind. It's a good I'am not warning, yet,” Tadić was quoted as saying.

Two companies building the most in Serbia are Delta and MPC. Both of them do not have headquarters in Serbia. They are only registered here while the owners are offshore companies in Cyprus and Holland.

In this way, everything they have purchased in Serbia is formally in the ownership of foreign companies. Even though this is allowed according to the law, the Serbian budget loses millions from such activity.

Since most of the property is owned by foreign offshore companies, if they decide to sell one day, they will not be paying any taxes to Serbia, even though the property is “worth billions”.