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Vengeful Tax Officials and the Unbearable Lightness of the Tax Burden

Why do taxpayers in Croatia fear signing letters in which they complain about excessive tax burdens.

written by Ivica Grčar
[email protected]

In an unsigned letter from Zadar, an anonymous reader complains about the tax (over)burden. But why would someone be afraid to sign a letter complaining about something that is common in Croatia? The only thing that comes to mind is that the reader fears retaliation from ‘their’ tax officials. I too am personally exposed to pressure from tax officials due to critical writings about the corruption and incompetence of Ivan Šuker, the Minister of Finance, and most other officials of the Ministry of Finance, especially the Tax Administration.

‘Thieves’ who pay taxes The anonymous reader writes that I should finally openly publish how high the tax burden is in Croatia and proposes their calculation of the obligations of craftsmen (who are increasingly deregistering their businesses due to taxes). I am publishing the calculation in the framework alongside the text. The anonymous reader complained in the letter that tax officials told him to his face that they consider him a thief. And this in the Tax Administration, claims the reader, whose head of department is educating his two daughters in America. Although I shy away from ‘anonymous letters’, I have published the letter almost in its entirety. However, the reader should have written their name to me, and I would not publish it if we agreed that way, just as I have not done so far. But I would gladly publish the name of the head of the Tax Office and ‘determine the source of funds’ for the American tuition fees. As I have previously published that tax officials extort taxpayers to cover costs for their sports games in Medena near Trogir, that they abuse the tax supervision process by determining it solely for delaying VAT refunds, that they continue with tax proceedings despite a final judgment from the competent county court, that corrupt tax officials do not collect unpaid taxes from those who bribe them, etc.

And here is how tax officials pressure journalists whose writings they are not satisfied with (I cannot determine whether they do this at the minister’s instruction or on their own initiative to please the minister). For the past five years, I have been supplementing the difference between my pension and the full price of accommodation for my 98-year-old mother in an institution with appropriate professional care. I supplemented this difference based on a contract with the institution and have all the invoices, and the amounts of these differences ranged from 28,000 to 32,000 kuna per year. During the same period, I earned author fees and, although I was insured on another basis, tax officials tried to charge me contributions on the author fees. This would mean that they calculate contributions on the amounts of the supplements, i.e., on the amounts I paid instead of the ‘state’ for the care of a 98-year-old woman. Similar to the reader’s calculation, the income after paying taxes, surtaxes, and disputed contributions would amount to only about seven percent of gross income.

Tax (over)burden
Reasons for deregistering businesses
According to the calculation of the anonymous reader, the annual gross income on the craftsman’s account of 300,000 kuna is reduced by:
– 56,097 kuna VAT,
– 38,400 kuna contributions,
– 30,000 kuna government contributions,
– 103,200 kuna net salaries,
– 10,000 kuna various parafiscal charges,
– 40,000 kuna tax-deductible expenses (rent, phone, fuel, etc.),
– 22,303 kuna income after taxation.
The reader’s calculation lacks two items, how much he had the right to a VAT refund and how much the so-called tax levy, or the so-called crisis tax, is.

Illegal contributions Despite the tax officials, I have not ‘deregistered my activity’ nor stopped writing, and currently, a procedure is underway at the Constitutional Court regarding everything. And so that I do not forget to mention the names of the tax officials who are trying to charge contributions on contributions as an anonymous reader, the order giver is Tomo Šnajder, head of the Central Tax Office for the collection of contributions, and all decisions on this illegal collection were signed by Zdravko Markač, head of the Tax Office Zagreb Center, who has since been sentenced to four years in prison and a five-year ban on performing work. No one from the Tax Administration has so far thought to check whether there are any illegal decisions among those that Markač signed, in addition to those for which he received a non-final court sentence. It is good to remind all taxpayers of this now when they submit their annual tax returns.

We invite entrepreneurs to present their problems. Following your writings, by pointing out the absurdities in individual cases, we will highlight the shortcomings of the system as a whole and thus support the readers of Lider as individuals in their unequal disputes with the cumbersome state administration. Contact:
email: [email protected]
tel. 01/6333-524
address: Ivica Grčar, Lider,
Savska 41, 10144 Zagreb