On December 7th, 2018, the Court of Bosnia and Herzegovina confirmed Indictment against Mario Galić for the criminal offense of Tax Evasion or Fraud under Article 210 Paragraph 3 as read with Paragraph 2 of the Criminal Code of Bosnia and Herzegovina.
According to the Indictment, the accused Mario Galić (under Count 1), in the time period of 1-31 August 2016, in Široki Brijeg, in capacity as a responsible person at the BDM GROUP d.o.o. (limited liability company) Široki Brijeg, upon purchase of BMW passenger cars from supplier UniCredit leasing d.o.o. Sarajevo in the amount of 161,761.70 BAM – with the amount of input value-added tax (VAT) of 23,503.84 BAM and a passenger car of the same make, from the same supplier in the amount of 162,375.25 BAM and the amount of used input VAT of 23,592.98 BAM – in violation of Article 38(2) of the Law on VAT and Article 64(1) of the Rulebook on the Application of the Law on VAT, deducted input tax in the amount of 47,095.00 BAM, thereby damaging the Budget of BiH in the said amount. Next, under Count 2 of the Indictment, during the same period, upon purchase of BMW passenger cars from supplier Autocentar Tomić d.o.o. Mostar with the amount of advance of 20,000.00 BAM and the amount of used input VAT of 2,905.98 BAM (i.e. 20,000.00 BAM and the amount of used VAT of 2,905.98 BAM), the accused deducted input VAT in the amount of 5,811.00 BAM even though the supplier Autocentar Tomić d.o.o. Mostar canceled the invoices paid in advance.
In this manner, the accused exercised the right to refund of input VAT for the purchases that were never affected, thereby damaging the Budget of BiH in the said amount.
Next, under Count 3 of the Indictment, in the time period of 1-31 December 2016, the accused made a record of an invoice of supplier eCARD d.o.o. Mostar in the total amount of 35,100.00 BAM referring to alleged advertising services for BDM GROUP d.o.o. Široki Brijeg even though no business cooperation contract was concluded with eCARD d.o.o. Mostar. In this manner, the accused exercised the right to refund of input VAT in the amount of 5,100.00 BAM, thereby damaging the Budget of BiH in the said amount. Consequently, with the aim of exercising the right to refund (indirect taxes) provided under the legislation of BiH, he filed a false tax return, thereby committing the criminal offense with which he is charged under the Indictment.