At the sitting held on 14 May, the Finance Committee considered in principle the Bill on the Confirmation of the Contract between the Government of the Republic of Serbia and the Kingdom of Spain on Avoidance of Double Taxation Regarding Income and Property Tax, submitted by the Government of the Republic of Serbia and the State Audit Institution’s Activity Report for the period 1 January – 31 December 2008.

A representative of the Ministry of Finance elaborated the Bill on the Confirmation of the Contract between the Government of the Republic of Serbia and the Kingdom of Spain on Avoidance of Double Taxation Regarding Income and Property Tax, stressing that it had been signed in March this year, and it pertains to the avoidance of double taxation of physical and legal entities in Serbia and Spain and cooperation of tax organs of the two countries.

The President of the Council of the State Audit Institution, Radoslav Sretenovic presented in brief the SAI Activity Report for the previous year. He stated that the SAI to date still lacks appropriate working conditions (offices and equipment). Due to this the auditors have not yet completed the pilot version of the Republic of Serbia 2007 budget financial statement, but only a preliminary analysis. He also announced the beginning of the audit of the Republic of Serbia 2008 budget financial statement in May this year.

The Committee members shall vote on the discussed items in the continuation of the sitting.

The Committee members accepted the Committee Chairman’s initiative to discuss the petitions that physical and legal entities forward to the Committee at one of the upcoming sittings, and that the Report on the Control of Political Parties’ Financial Statements for regular operations in 2008 be done in the same way as the 2007 Report and be discussed as soon as possible at a Committee sitting considering that as of October this year the issue will no longer be within the Committee’s purview.

The sitting was chaired by the Committee Chairman, Zoran Krasic.