Tax is the basic source of budget financing and is the instrument of realization of prescribed state jurisdiction and of its units, whose harvesting is directly dependent on the functioning of the state. The tax system in RS is subject to frequent changes and reforms, which can present financial institutions and businesses with real challenges, particularly given the active implementation of numerous actions to improve the efficiency of the Tax Administration in detecting non-compliance with tax laws and the collection of established tax liabilities in order to reduce budget deficits of the Republic of Serbia. Therefore, the planning of tax liabilities and the management of tax risk relating to business operations is becoming increasingly complex.

What further distinguishes the practice in this field from the other areas of law is the superiority of the state, as a subject which not only regulates tax policy by enacting corresponding regulations, but is also the beneficiary of the funds, which inevitably affects the interpretation of tax rates by competent authorities in tax collection. This brings along are specifics, such as the enforceability of the first instance decision of the competent authority; a different treatment in terms of the consequences of default in relation to taxpayers (state lag towards the taxpayers does not have the same consequences as the lags of taxpayers towards the state); the facticity principle (which is very broadly interpreted by the Tax Administration and applied in practice, in order to increase the liabilities of taxpayers and reduce its own obligations to the taxpayers), etc.

Thus, in practice it often happens that the Tax Administration’s certain actions do not have a base in the regulations, but in the "usual practice" of the body, based on the interpretation which needn’t inevitably be legally valid and acceptable. Often businesses do not want interpretation and legal approaches to be called into question, for fear of the retaliation from tax authorities, which, unfortunately, is not unheard of in the RS.

Therefore, all these facts must be taken into account when providing legal services in connection with the tax law, and only the knowledge of the norms in this field in most cases is not enough to adequately meet the needs of clients who, as part of the corporate reality in RS, have no need for 'Rough justice', but by the optimization of tax liabilities with predictable consequences in a manner that will not cause long-term and uncertain litigation, extraordinary office controls of entity operations and potentially create unintended risks and additional financial exposure, as well as sanctions for violations and economic crimes.

 

 

 

Our team has a proactive approach to this field of law, following the latest positions taken in the practice of competent institutions. We are able to offer our clients tax advice in order to optimize business operations, achieve tax savings, and avoid disputes with tax authorities and demanding administration that usually occurs due to frequent changes and varying interpretations of tax regulations.

Thus, a word of advice at the right time in the tax procedure is more valuable than hundreds of hours of work when a dispute has already arisen. However, even in these situations, we have managed to save clients' millions through representation in court proceedings, and we are particularly proud of the proceedings for the collection of one-time tax on extra profit, in which we (despite all the specifics of this tax, which few are familiar with) created the basis for a multimillion (in Eur) repayment of unlawfully collected tax for our esteemed client - the largest retail chain in the Republic of Serbia, after many years of struggle, based on the decision of the Constitutional Court.

The LP team also provides advice to foreign investors in order to avoid double taxation, and general tax advice for a better adjustment to the tax policy of the Republic of Serbia.

Our services are divided into several groups:

  • Tax Planning;
  • Tax consulting for individuals and legal entities;
  • Tax consulting on the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS);
  • Tax incentives;
  • The tax treatment of employee benefits and tax optimization of operations;
  • The tax aspects of restructuring and transformation of business entities;
  • The tax treatment of foreign investments;
  • Support in tax audits;
  • Representation before tax authorities and courts;
  • Tax consultancy in relation to all tax matters, tax liabilities and tax returns;
  • Zastupanje pred poreskim organima i sudovima;
  • Poresko savetovanje u vezi sa svim poreskim pitanjima, poreskim obavezama i poreskim prijavama
© 2017 Lazarević & Pršić advokati