Tougher inspection supervision of illegal businesses

On average, each Serbian company is inspected six times a year. The biggest objection that company owners have that inspectors usually supervise the same companies over and over again, and these are the companies that operate legally, rather than more supervising those that do their business illegally.

These are the results of a survey conducted by the Serbian Chamber of Commerce. According to the survey, relevant inspection bodies have actually supervised the work of only 3% of companies in Serbia. Once the changes of the Law on Inspection Supervision are adopted, the inspection control will be more frequent, especially in the companies that are operating in a gray area and avoid paying taxes.

Following the survey, company owners and representatives of inspection bodies met in order to eliminate all the ambiguities regarding the relevant law.

“You have instances when a new company owner has no-one to turn to for information about his legal obligation. Inspectors, on the other hand, are pointing to company lawyers, bookkeepers and advisors as people that company owners have to turn to for information. What needs to be done is to simplify the way in which business owner acquire the needed information”, said businessman Aleksandar Vasic.

One of the aims of the new Law on Inspection Supervision is to combat shadow economy – almost one third of companies in Serbia operate in this area. From January to April this year, inspectors have found 8,065 unregistered workers. Following their intervention, 7,579 of these workers were properly registered by their employers.

Zarko Malinovic from the Chamber of Commerce says that Serbia also needs tougher penalties for such employers. “We have very high income tax which is one of the reasons why companies choose not to register the workers, or pay them a minimum wage”, Malinovic added.

(N1, 15.09.2017)


This post is also available in: Italiano

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