Tax evasion costs Serbia hundreds of millions

The Serbian budget has lost EUR 850mn over the last six years to tax evasion, Belgrade daily Blic writes. The tax police has filed over 9,000 charges against 11,850 individuals since October 2003. Tax evasion costs Serbia hundreds of millions Only 206 of these charges ended in jail time, the most serious case being a six year prison sentence for tax evasion of RSD 50mn, Blic writes. Last year, the tax police sector filed 1,967 charges to the prosecution for RSD 14.5bn of evaded taxes. Compared to the same time last year, the number of filed charges is great by seven percent, Tax Police Chief Inspector Vesna Aleksic said. “Wherever we confirm that the paying of taxes was avoided on purpose, there can be charges filed,” she said, adding that tax evasion has been growing in Serbia over the last six years and that administrative capacities need to be increased to combat it. “Of the RSD 83.5bn confirmed tax evasion, at this moment, verdicts have accounted for only RSD 2.7bn, which shows that the policies and practices are stimulating tax evasion more than working to increase tax discipline,” Aleksic said. She said that tax evasion is a serious occurrence that has an immeasurable effect on the budget. Aleksic added that despite the large sum of evaded taxes that have been uncovered, “little of the taxes went to the budget, because according to the law, the perpetrator guarantees for the taxes with property, and even when the person is convicted, the taxes do not get paid.” “That problem was solved now with the law for seizing property gained through crime. Tax evasions of over RSD 1.5mn fall into this category. In these cases, the property of the suspect will be temporarily seized immediately. If the person is convicted, all of their property is taken away,” Aleksic said.

Tax evasion costs Serbia hundreds of millions

Only 206 of these charges ended in jail time, the most serious case being a six year prison sentence for tax evasion of RSD 50mn, Blic writes.

Last year, the tax police sector filed 1,967 charges to the prosecution for RSD 14.5bn of evaded taxes.

Compared to the same time last year, the number of filed charges is great by seven percent, Tax Police Chief Inspector Vesna Aleksić said.

“Wherever we confirm that the paying of taxes was avoided on purpose, there can be charges filed,” she said, adding that tax evasion has been growing in Serbia over the last six years and that administrative capacities need to be increased to combat it.

“Of the RSD 83.5bn confirmed tax evasion, at this moment, verdicts have accounted for only RSD 2.7bn, which shows that the policies and practices are stimulating tax evasion more than working to increase tax discipline,” Aleksić said.

She said that tax evasion is a serious occurrence that has an immeasurable effect on the budget.

Aleksić added that despite the large sum of evaded taxes that have been uncovered, “little of the taxes went to the budget, because according to the law, the perpetrator guarantees for the taxes with property, and even when the person is convicted, the taxes do not get paid.”

“That problem was solved now with the law for seizing property gained through crime. Tax evasions of over RSD 1.5mn fall into this category. In these cases, the property of the suspect will be temporarily seized immediately. If the person is convicted, all of their property is taken away,” Aleksić said.