The Law on Financial Operations that the Parliament of FBiH adopted in June will be applied from the 1st of January 2017. Its application should decrease enterprise illiquidity in FBiH and restore order in the execution of monetary obligations.
The Law on financial operations refers to all legal entities engaged in activities with the aim to make a profit, and in accordance with the regulations on companies, as well as physical persons who are independently performing economic activities.
The law requires that the management of each company must undertake certain actions in case of capital inadequacy in a defined period of time. The inadequacy of capital is created in the company if on the date of making financial reports the loss for the year plus accumulated losses reached half of the capital of the company.
Specific changes refer to the payment terms and the introduction of penalties for their violation.
Thus, this law stipulated that the deadline for payment is 30 days unless specifically agreed different by the two sides. The deadline for payment two sides may agree to 60 days, and if they agree on a longer payment period, which cannot be longer than 360 days, the borrower is obliged to issue a creditor irrevocable bank guarantee payable on demand without protest.
Special novelty is the introduction of penalties for those who violate the terms of payment. Until now, if a client or customer refuses to pay for services or goods, you could start civil proceedings before the competent court.
However, the new law stipulates that the tax inspectors can punish debtors who violate the terms of payment. Thus, a legal entity in case of delay in payments will be penalized with the amount between 5,000 and 15,000 BAM, a responsible person in the legal entity will be penalized with the amount to between 1,500 and 3,000 BAM. Also, fines in case that legal entity or the responsible person refuse to participate in the supervision process are prescribed as well.
(Source: N. N./Klix.ba)
