The Tax Administration initiates and conducts the procedure ex officio in two phases:
- preliminary procedure and
- the control procedure and determination of the special tax.
The preliminary procedure is conducted in accordance with the annual guidelines, which are not publicly available. However, it may also be initiated based on the application of another authority or a natural or legal person.
Therefore, the competent Tax Administration Unit should determine that it is probable that there is a difference between the increase of the property and the reported income of the individual in order to move to the next stage – the control procedure.
The inspector will, by applying the special tax technique foreseen by both the new and the Law on Tax Procedure and Tax Administration, the so-called cross-check of property, indicate the discovered secret to the person so it will have to justify the acquisition of its property.
If, during this mission, the inspector discovers facts indicating that there are grounds for suspecting a criminal offense, the inspector will inform the police, the public prosecutor’s office and other competent authorities, who would then join them in the struggle to provide an efficient tax system in Serbia.
If a material gain by the criminal offense is determined by a final judgment in the criminal proceeding, and the person has previously paid a special tax under this Law, the court will include the special tax paid for the material gain obtained criminally, which is a mitigating circumstance. This is also applied in proceedings for the forfeiture of property arising from a criminal offense.