AmCham Macedonia Spring 2016 (issue 49) | Page 19

means companies have virtually no time to adjust their systems, deliver training to their employees or take other measures to comply with the law before it officially enters into force. The “grey zone” regularly created by this practice is further compounded by implementing legislation that is sometimes adopted 6-12 months late. ANALYSIS Additional Liabilities Identified in PRO Audits € 35,000,000  € 30,000,000  € 25,000,000  € 20,000,000  € 15,000,000  € 10,000,000  € 5,000,000  €‐ 2009 VAT/ДДВ 2010 2011 Income tax / ДД 2012 Personal income tax / ПДД 2013 2014 Other payments Along with frequent changes Source: Data from PRO annual reports 2009-2014 published on http://ujp.gov.mk/, AmCham Macedonia presentation. to national tax regulations, the interpretation of law and the application of regulations have private sector in advance when failure to process incoming cash as varied, in the experience of some required by law; by 2014, this porcrafting tax legislation, leading to in the private sector. Different pertion fell slightly to 44.3%. Unfortuquite positive results for business. sonnel in the tax administration may nately, the PRO could not respond One example of this was noted in have differing interpretations- potento AmCham’s request for further March 2015; the Union of Chambers tially, without anyone being aware details, including which other pracof Commerce was consulted by the of such discrepancies. Since the tax tices are most often fined or the Ministry of Finance in advance of authority never issues legally-bindprofile of companies most often the key amendment to the law on ing opinions, there is no definitive being fined (size, location, indusincome tax. The practical result was way for tax payers to predict h