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 latest amendments to the Law and is implemented based on the risk analysis. Before, it was estimated that the preliminary procedure would be implemented in accordance with the annual guidelines, but during the drafting of bylaws for implementation of the Law, it was concluded that it is sufficient and suitable to implement the preliminary procedure based on the information contained in the risk analysis, which precedes the drafting of Annual guidelines, and is not based on the Annual guidelines. The previous procedure can be initiated on grounds of applying another authority, or on the initiative of 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.
By applying the special tax technique prescribed by both Law and the Law on Tax Procedure and Tax Administration, the so-called cross-check of property, the inspector shall indicate what they have discovered to the individual, who then has to justify the acquisition of their property.
If, during this mission, the inspector discovers facts indicating that there are grounds for suspecting a criminal offense, the inspector shall inform the police, the public prosecutor’s office, and other competent authorities, who then join in the battle for 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 individual has previously paid a special tax under this Law, the court will include the special tax paid for the material gain obtained criminally. This is also applied in proceedings for the forfeiture of property arising from criminal offenses.