RS blocks UIO BiH bank accounts in this entity

Source: N1

The Republika Srpska (RS) entity had blocked a number of accounts of the state Indirect Taxation Administration (UIOBiH) in banks operating in this entity in a bid to collect the BAM 15 million (some € 7 million) debt from the ITA. The debt was made after the State Court ordered the ITA to pay BAM 28 million (approx. € 14 million) with interest to the RS.

The UIO BiH spokesperson Ratko Kovacevic said that 15 days ago they appealed to the Court to prolong the debt collection deadline. After an earlier similar request, the State Court ordered the suspension of enforcement proceedings because it jeopardised the functioning of that financial institution.

“In our request, we explained that the money is fewer from public accounts for the payment of indirect taxes, as well as reserve accounts and deposit accounts, where most citizens keep their money,” Kovacevic noted. “There is no way for the UIO BiH to return the withdrawn funds to interested parties, which is what we had to do.”

The Court recognised the problem, he said and suspended the enforcement proceedings for three months, but the deadline ends on Wednesday.

Unfortunately, the Federation of Bosnia and Herzegovina entity and the RS haven’t found a solution for some other model of the verdict execution,” Kovacevic added.

The UIO BiH suggested that a certain amount of money be taken from the FBiH accounts and paid to RS accounts until the debt is paid.

Bosnia and Herzegovina consists of two semi-autonomous entities the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS).

During a previous blockade of ITA accounts in RS banks, this entity managed to collect 4.67 million marks (some € 2.2 million).

In May 2015, the Court of Bosnia and Herzegovina decided that the UIO BiH must pay BAM 15 million (Some € 7 million) with interest due to the illegal distribution of revenues from indirect taxes for 2009 and 2010. During this period, the RS received fewer funds than they should.

(€ 1 = Mark 1.95)