In the previous article, we discussed the conditions that lead to the TIN revocation, that is, when the Tax Administration, during the control procedure, i.e. the verification procedure based on data from official records, determines that there were obstacles to the TIN allocation (that is, outstanding tax liabilities) at the time of the TIN allocation, the Tax Administration issues a decision on TIN revocation. The decision temporarily revokes the allocated TIN – until the obstacles have been removed. The Tax Administration submits a copy of the decision to the bank and the organization responsible for forced collection from the debtor’s account or the prohibition of the disposition of funds in accounts with commercial banks.
As the Law on Tax Procedure and Tax Administration (Serbian: ZPPPA) states, the decision revokes the TIN temporarily – until the observed obstacles have been removed. Although this often sounds as a temporary condition in its definition, it has been demonstrated in practice that it may be quite prolonged.
If the reason for the TIN revocation is a tax debt, as is most often the case, it is necessary to first review the structure of the debt, determining whether certain claims are out of date or have been entered incorrectly, and then submitting appropriate requests to the competent local Tax Administration office. Especially if the aforementioned steps are required for the completion of the tax debt restructure, which, together with the tax debt settlement, is another means to remove the justifications for TIN revocation.
The Tax Administration may postpone the payment of the outstanding tax, in whole or in part, upon the taxpayer’s request, provided that the payment of the outstanding tax:
1) entails an excessively large financial burden for the taxpayer;
2) causes the taxpayer significant financial harm.
The Tax Administration may approve to a deferral of the outstanding tax payment in installments for up to 60 months, with a deferred payment option of up to 12 months.
The provisions of the Law on Tax Procedure and Tax Administration stipulate that in the decision-making process on deferring the payment of outstanding tax, the taxpayer is required to provide collection security funds, which cannot be less than the amount of outstanding tax whose payment is being deferred.
It should be noted that by having the TIN revoked, the entire business is blocked and that, in addition to the tax debt, costs only accumulate over time. The entrepreneur needs to act quickly, precisely and most importantly – persistently!
After removing the reason for the TIN revocation, it is necessary to submit a request to the Tax Administration (also to the competent local office), for the adoption of a decision by which the TIN is allocated back. It should noted that by removing the reason for the TIN revocation there is no automatic method for allocating the TIN back,and regardless of how formal it may appear, a request must be submitted to the Tax Administration. For that reason we pointed out that the previously mentioned persistence is necessary for this decision. In particular, the ZPPPA does not specify a date for allocating the TIN back. The Tax Administration’s main office has a standard 30-day window in which to respond to your request; however, this window may be extended by an additional 30-days.
The TIN revocation cases, as well as the process of allocating the TIN back are bad examples of what may go wrong and what does go wrong right away after the business entity is registered in the APR if you do not entrust it to professionals or if you are not competent to do it yourself. Although it may not seem that way at first, experience has shown that it is much better to invest time, energy, and even money into ensuring your own legal security and the legal security of your entire company. This will allow you to take advantage of much clearer and more certain business opportunities in the timely manner, free from the stress of losses and debts. The teams of both “Creative Finance” and our parent association “Welcome to Serbia” are at your disposal in order to prevent unpleasant experiences.