Causes of inefficient collection of social contribution in Bosnia and Herzegovina and the need solutions

• Main Authors: Slavko Vukić, Enida Tvrtković
• Format: Article
• Language: English
• Published: Faculty of Economics in Osijek 2013-07-01
• Series: Ekonomski Vjesnik
• Subjects: evasion of contributions; problems with collection of contributions; improvement of collection efficiency
• Online Access: http://hrcak.srce.hr/file/159507

The first part of the paper briefly analyzes the theoretical framework of taxes and social insurance contributions, as well as characteristics of tax and contributions evasion. The second part looks into the issue and causes of poor collection of social security contributions in Bosnia and Herzegovina, in particular in the Federation of Bosnia and Herzegovina. The paper highlights the problem of poor coordination between social insurance funds and tax authorities, inadequate legislation on calculation and collection of contributions, as well as bellow-par work and organization of inspection authorities. Based on the above, a number of concrete proposals for more efficient collection of contributions are put forward. These proposals aim to improve the efficiency of collection of social insurance contributions by creating a better system of registration of persons subject to paying social insurance contributions, improving the collection of and reporting on contributions which requires institutional reforms, as well as new or amended legislation on determining contribution base and rates.