LAW ON PUBLIC REVENUE ADMINISTRATION
(PUBLIC REVENUE OFFICE LAW)
(Published in the
Official Gazette of the Republic of Macedonia No. 80/93-1963)
I. GENERAL PROVISIONS
This Law institutes the Public Revenue Administration and regulates the determination, control and collection of public revenues from the tax payers.
The Public Revenue Administration attends to matters concerning public revenues, as an integral organ of the Ministry of Finance.
Public revenues are determined by law and their enforcement ensures the implementation of the law and regulations prescribed in accordance to the law relating to the administering of the obligations of taxes, dues and other public expenditures determined by law (further referred to as: public revenue affairs).
Legal entities, physical persons performing an activity and civilians are obliged, at the request of the Public Revenue Administration, to submit information and to place all relevant documents at their disposal for the determination of public revenues.
The Public Revenue Administration, while performing duties under its authorization, may enforce coercive measures under conditions
stipulated by law.
The Public Revenue Administration is to notify taxpayers of their rights and obligations following the implementation of regulations relating to public revenues and the rights pertaining to reduction and exemption of taxes, dues and other public expenditures.
II. ORGANIZATION OF THE
PUBLIC REVENUE ADMINISTRATION
The Public Revenue Administration, whilst dealing with affairs under its authority, functions solely on the territory of the Republic and is responsible to the Ministry of Finance and the Government of the Republic of Macedonia for its performance.
Regional units are established for the administering of public revenues within the Public Revenue Administration.
Regional units are established for each municipality and the city of Skopje. They may also be established for two or more municipalities.
The Public Revenue Administration and the regional units are provided with a seal.
III. AUTHORITIES OF THE
PUBLIC REVENUE ADMINISTRATION
Public revenue affairs that are performed by the Public Revenue Administration primarily appertain to:
1) determination of different obligations relating to taxes, dues
and other public expenditures of the taxpayers;
2) providing equal implementation of laws of the public revenue
sphere on the entire territory of the Republic of Macedonia and
conducting direct control over the implementation of laws and
other regulations concerning public revenues;
3) control of yield of incomes, operating expenses, profit
statements and other components of significance in determining
the level of public revenues;
4) control of the indicated figures in acquiring tax reductions
5) regular and forced collection of public revenues;
6) maintaining files of taxes on sales of goods and services,
incomes, types and values of properties, sales of properties,
and other influential facts in determining public revenues and
implementing the rights and liabilities of the taxpayers;
7) maintaining files of the determined levels of the taxpayers
liabilities and their timely enforcement;
8) recording the changes of the taxpayers by categories of taxes,
dues and other public expenditures;
9) obtaining data of the amounts levied on the taxpayers for
taxes, dues and other public expenditures;
10) organization and planing of control employed on taxpayers
regarding payment of taxes and sustaining a single methodology
11) issuing instructions for single implementation of regulations;
12) introduction of file maintenance on taxpayers through a single
13) drafting of analysis, information and reports concerning the
condition of public revenues;
14) providing opinions of the application of regulations involving
15) formulating drafts of laws and other regulations relating to
16) resolving administrative procedures concerning public revenue
17) attends to work promotion and professional advancement of
employees engaged in public revenue affairs;
18) provides standard tax returns and other forms;
19) organizes the functioning of a single informative sub-system
in the public revenue field, which incorporates information
essential for the functioning of the organ, overseeing the
implementation of tax liabilities, fulfillment of citizens
rights and responsibilities and providing further information
important in perceiving the conditions of public revenues and
their improvement; and
20) administering other matters determined by law.
Further to the activities under article 9 of this Law, the Public Revenue Administration deals with matters concerning the determination of liabilities for payment of contributions, self-imposed taxes and other expenditures if they are entrusted by law or if decisions are defined by law.
Regarding the enforcement of matters under paragraph 1 of this article, an agreement is concluded and compensation is collected.
Earnings from compensations under paragraph 2 of this article are to be refunded in the budget of the Republic of Macedonia.
IV. MANAGEMENT OF
THE PUBLIC REVENUE ADMINISTRATION
The Public Revenue Administration is managed by a director.
The director of the Public Revenue Administration has a deputy and assistants.
The director of the Public Revenue Administration, the deputy and the assistants of the director are appointed and discharged by the Government of the Republic of Macedonia, by proposal of the Minister of Finance.
The employees in charge of the regional units are appointed and discharged by the Minister of Finance, by proposal of the director of the Public Revenue Administration.
V. TAX INSPECTION
Tax inspection is a special organizational unit instituted to control public revenue affairs within the Public Revenue Administration.
The control of public revenues is conducted by licensed employees -tax inspectors.
Highly qualified individuals, with a minimum of three years working experience in economic or legal fields can be appointed tax inspectors.
Tax inspectors are appointed and discharged by the Minister of Finance by proposal of the director of the Public Revenue Administration and with the agreement of the Government of the Republic of Macedonia.
The tax inspection performs the following duties in respect to the taxpayers:
1) controls the accuracy in the maintenance of business records,
operating documents and other evidence issued by taxpayers;
2) reviews the operating supplies and reserves, stocktaking, raw
materials, semifinished products, ready goods and capital assets;
3) controls the method of payment of taxes, dues and other public
4) controls the business and other premises where the activity
is performed or goods and other products are stored;
5) interrogates taxpayers and witnesses and obtains written
statements relating to relevant facts in determining public
6) controls the condition and value of real estates, properties
and property rights that are liable to taxation;
7) controls the purchases and sales of real estates and rights;
8) performs other essential duties in uncovering and sanctioning
hidden taxes, dues and other public expenditures.
During control, the inspector has the authority to temporarily expropriate goods that are on sale until the final decision in the offense proceedings.
The expropriation of goods on sale under paragraph 1 of this article is employed in the following instances:
- when the merchandise is produced or supplied without proof of
payment of the imposed taxes and other expenditures;
- when goods are sold by individuals that have not been registered
or licensed; and
- when goods on sale have not been properly registered in the
business records and in other designated documentation.
Expropriated goods, as stipulated under paragraph 2 of this article, are subject to public sale and become a revenue of the Republic after deduction of expenses.
Public auction is applied in accordance with the provisions of the law on personal income tax.
During control, the inspector is temporarily entitled to undertake the following steps, until the proceedings are concluded:
- to seize particular business records, documents and other
important evidence and material for determining public
- to prohibit the performance of particular activities or the
handling of certain funds; and
- to prohibit the performance of an activity if it is defined
If it is suspected that commercial or other activities are performed, which are liable to taxation, outside the registered business premises, the inspector shall control those premises following a brought decision.
Taxpayers are obliged to facilitate the inspector with the required conditions to carry out control.
Taxpayers or persons in charge of taxpayers are obliged to provide written explanations regarding the subject under control at the request and within the period designated by the inspector.
During control, if the inspector concludes that the accounting of the taxpayer is irregular and inaccurate, that the imposed liabilities have not been computed or computed incorrectly, he shall pass a resolution ordering the taxpayer to update and settle the accounting and to compute and pay outstanding duties within a set period.
If the taxpayer fails to fulfill the orders under paragraph 1 of this article within the set period, a ban shall be pronounced, based on the decision under article 20 of this Law, restraining the disposal of funds on the giro-account, temporarily prohibiting the performance of activities and other measures determined by law.
The inspector composes a report of the control. The control report is submitted to the taxpayer, at the latest within a period of eight days from the date of control.
The taxpayer is entitled to comment the control report within a period of eight days from the date of receipt.
If the comments on the control report disclose facts and evidence, that would influence the decision and require the undertaking of other measures according to law, the disclosed facts and presented evidence shall be examined and an additional report shall be composed.
If illegalities or irregularities are determined during the control procedure, the inspector shall bring and submit a decision to the taxpayer with orders to undertake certain actions to eliminate the illegalities or irregularities.
The decision under paragraph 1 of this article is brought within a period of 30 days from the date of receipt of the control report comments or from the expiration date for submission of comments to the report.
The decision under paragraph 1 of this article defines the terms by which the taxpayer is obliged to eliminate the determined illegalities or irregularities, which can not be less than eight or more than 15 days from the date the decision becomes final.
The taxpayer can file a complaint to the director of the Public Revenue Administration against the decision under article 20 of this Law, within a period of 15 days from the date the decision is submitted.
The decision brought by the director of the Public Revenue Administration, under paragraph 1 of this article, is considered to be final in the administrative procedure.
The provisions of the Law on General Administrative Procedures shall be applied in respect to decision making and undertaking other actions during the control procedure, unless otherwise determined by this Law.
Should the inspector determine that there are suspicions of committed criminal acts, business or other violations, he is obliged, without delay, to file an appeal to the public prosecution office and magistrate office.
All legal entities and physical persons are obliged to enable the inspector to carry out control, to place all evidence at his disposal and to give statements of facts that are of importance in determining public revenues.
The inspector must carry official identification whilst conducting control of public revenues.
The form and content of the official identification is designated by the Minister of Finance.
VI. INFORMATION SUB-SYSTEM
The Public Revenue Administration establishes an information sub-system which incorporates unified functioning and organization of standards, definitions, classification and nomenclature, coding of information, technical processing and transfer and presentation of information pertain to taxpayers.
The Public Revenue Administration is obliged to assure protection and confidentiality of the figures and information at hand, which may be used to inflict material and other damages to the taxpayer or other individuals in the procedure.
The taxpayers liabilities regarding public revenues are entered in the tax accounting in a way which enables insight into the amount of the liabilities by types of taxes, dues and other public expenditures, effected payments, balance of debts and computed expenses and interests.
The document, that is issued on the basis of the accounting records of liabilities that are maintained according to the provisions of this Law and regulations determined by law, is to be considered a public document.
The Minister of Finance prescribes further regulations of pertaining to tax accounting.
The taxpayer is entitled to examine the evidence and information that is maintained by the Public Revenue Administration, which applies to himself.
VII. OPERATIONAL AND FINANCIAL RESOURCES
In addition to the resources acquired from the government budget, the Public Revenue Administration also obtains means from the following collections:
1) 15% from collected interests on outstanding public revenues and
2) 20% from collected taxes on concealed incomes.
The resources under paragraph 1 of this article are used for organization, modernization and advancement of the Public Revenue Administration and as an incentive for the employees.
The resources under paragraph 2 of this article are employed in accordance to the program presented by the Government of the Republic of Macedonia.
VIII. PENALTY CLAUSES
The person in charge of the legal entity and physical persons performing an activity, shall be fined with a penalty from one to five salaries for failing to place documents, relevant in determining public revenues (article 4 of this Law), at the disposal of the Public Revenue Administration.
Legal entities shall be fined with a penalty from 50 to 100 salaries for violations listed below:
1) for failing to facilitate the inspector with the conditions
required to carry out control (article 17 of this Law) and
2) for failing to provide written explanations regarding the
subject under control (article 17 of this Law).
The person in charge of the legal entity shall be fined with a penalty from eight to fifteen salaries for violations under paragraph 1 of this article.
Physical persons performing an activity shall also be fined with a penalty from eight to fifteen salaries for violations under paragraph 1 of this article.
Legal entities shall be fined with a penalty from 50 to 100 salaries for failing to enable the inspector to carry out control and fulfill other duties (article 24 of this Law).
The person in charge of the legal entity shall also be fined with a penalty from eight to fifteen salaries for violations under paragraph 1 of this article.
Physical persons performing an activity shall also be fined with a penalty from eight to fifteen salaries for violations under paragraph 1 of this article.
IX. TRANSITIONAL AND CONCLUDING PROVISIONS
The control of the transformation of public capital, according to article 103 paragraph 3 of the Law on Transformation of Enterprises with Public Capital (Official Gazette of the Republic of Macedonia No. 38/93 and 48/93), is assigned to the Public Revenue Administration with the enforcement of this Law.
The Public Revenue Administration is responsible for the employees of the Social Accounting Service of the Republic of Macedonia, who are in charge of carrying out control as stipulated under paragraph 1 of this article.
The employees under paragraph 2 of this article continue to perform the control duties under paragraph 1 of this article.
On the day this Law enters into force, The National Revenue Administration and the regional organs - departments of taxation and departments of inspection, proceed to function as a Public Revenue Administration with competencies determined by this Law.
On the day this Law enters into force, The Public Revenue Administration undertakes responsibility of the employees of the Social Accounting Service of the Republic of Macedonia who are engaged in control.
The Public Revenue Administration assumes part of the property, equipment, instruments of labor, subjects, files and other registration materials and funds belonging to the Social Accounting Service of the Republic of Macedonia - the central office and its organizational municipality units, that are employed in performing public revenue duties, determined by a special committee appointed by the Government of the Republic of Macedonia for the creation of a final partition balance of the Social Accounting Service of the Republic of Macedonia.
The committee under paragraph 2 of this article divides the property, materials, technical and other means and formulates a final partition balance within a period of three months from the date this Law enters into force.
The report of the committee under paragraph 2 of this article concerning the division of property of the Social Accounting Service of the Republic of Macedonia between the Public Revenue Administration and the Office of National Payments is verified by the Government of the Republic of Macedonia.
Commenced and unresolved files that are maintained in the Social Accounting Service and the National Revenue Administration are assigned to the Public Revenue Administration on the day this Law enters into force.
Unresolved administrative and accounting disputes registered in the competent commercial courts corresponding to the Law on Social Accounting Service, shall be resolved in accordance with the regulations by which the proceeding is commenced.
The Law of Organization and Financing of the Revenue Administration of the Republic of Macedonia (Official Gazette of SRM No. 42/68 and 42/76) and the provisions regarding control of legal entities under the Law of the Social Accounting Service in the Republic of Macedonia (Official Gazette of SRM No. 44/85) shall terminate on the date this Law enters into force, while the corresponding provisions under the Law of the Social Accounting Service (Official Gazette of SFRJ No. 70/83, 16/86, 72/86 74/87, 37/88, 61/88, 57/89, 79/90 and 21/91), shall no longer be enforced in the Republic of Macedonia.
This Law enters into force on the date of publication in the Official Gazette of the Republic of Macedonia and shall be enforced as of January 1, 1994.