He adds that one of the flaws is the tardiness in the issuing of tax bills, which are sometimes several months late.
– For example, this year, the issuing of tax bills in Novi Sad began in May and is expected to take until October. This problem is especially pronounced when it comes to new enterprises, which can't pay taxes until their tax bills are issued, which means that their debts often pile up. Also, due to the inability to pay health care contributions, they find it difficult to exercise their health insurance rights – Pap points out.
According to him, the fourth important flaw is that lump-sum taxpayers pay their obligations to four accounts (unlike employers, which pay wage-based obligations to one payment account). This unnecessarily complicates the payment procedure and increases the amount of paperwork.
– The aims of upgrading the lump-sum tax payment system are certainly to remove the said flaws for the sake of taxpayers, but also to reduce the workload of the Tax Administration. It should be said that, under the current regulations, the Tax Administration adopts and prints around 350,000 decisions on determining the tax obligations for lump-sum tax payment each year, which means that it has to deploy considerable resources for individualizing the tax obligation for each taxpayer and then send the bills to all those taxpayers, register them etc. – Pap emphasizes.
According to out interviewee, the systems needs to be and will be harmonized with modern e-government trends, utilizing process automation to the fullest extent when it comes to determining lump-sum tax amounts.
– The Task Force formed by the Government of Serbia is to propose an amendment to the current regulatory framework so as to achieve the maximum process automation. In other words, the aim is to enable, we hope by 2020, each taxpayer to check whether they can be a lump-sum taxpayer and what their obligations will be at the Tax Administration portal. Eventually, the portal should also be able to generate and send tax bills – Pap said.
The Task Force has not yet formulated the final propositions, but the reform aims to upgrade the current lump-sum tax payment system so as to be more modern and efficient, removing the said flaws, which affect both the taxpayers and the Tax Administration, in the process.THIS ARTICLE IS A PART OF A SERIES OF ARTICLES ABOUT THE 5TH INTERNATIONAL CONGRESS OF TAX ADVISORS ON ZLATIBOR, AND OTHER ARTICLES CAN BE SEEN HERE.I. Milovanovic