Home / Comments and Opinions / Due to Complaining to Tax Officials, a Fine of 500,000 Kuna

Due to Complaining to Tax Officials, a Fine of 500,000 Kuna

Limitless arrogance A taxpayer who has been operating for only three weeks and dared to complain to the tax officials was handed a decision to pay an amount that is clearly impossible for him to pay within eight days.

writes Ivica Grčar
[email protected] 

A reader contacted us who started his own business in May of this year, very surprised by the incompetence and arrogance of the officials of the Tax Administration in Zagreb – Susedgrad Branch. This reader’s astonishment at the tax officials can easily be explained by the fact that he has only recently started his business; veteran entrepreneurs have long ceased to be surprised. The reader states that he stands behind everything he has written but asks that we do not publish his identity for now. Since he has provided us with copies of documents, we respect his wish for anonymity, noting that the information is in the editorial office. However, we publish the identity of the enraged tax inspector Martina Sikavica from ‘Susedgrad’.

Enraged Inspector Before he started his business, the reader visited the Tax Administration in Zagreb, Susedgrad Branch, to check if everything was in order since he established the company back in 2002, but it had not been active since then. He was told at the Tax Administration, after checking the information system, that the company was registered in the tax records and that there were no obstacles to starting the business. After submitting the VAT calculation form, the reader received a call to report to inspector Sikavica within three days ‘for the assessment of tax strength’ and to bring with him the URA and IRA books, analytical gross balance, tax and pre-tax account cards, and nine other various documents. The reader warned inspector Sikavica that he had only been in business for three weeks and could not yet prepare balances and other accounting documents for that period. Inspector Sikavica took offense and became angry, began to threaten, and behaved rudely. And indeed, the threats were not empty: the reader was handed a tax decision (signed by manager Jasna Kovačević instead of Sikavica) ordering him to pay all the VAT he had invoiced so far within eight days because, according to the decision, he had not submitted a VAT registration. The reader proves with documents that the company is duly registered in the VAT system and sees no other basis for the issuance of the mentioned decision other than the intention of Sikavica and Kovačević to abuse their power by imposing a payment obligation of half a million kuna in VAT, even though it is clear in advance that the taxpayer cannot pay this.

No Right to Appeal
Tax officials decide on appeals regarding their work themselves The new entrepreneur reader complained, as prescribed, to the Independent Service for Second Instance Administrative Procedure at the Ministry of Finance regarding the first-instance decision of a half a million kuna fine. If it is implied that the Second Instance Procedure Service should be independent, why did its founders feel the need to include the term independence in the name of that service? They did this subconsciously, knowing that Zdenka Koharić, the head of that infamous service, would not act against the first-instance decision of her colleagues Sikavica and Kovačević.

Unanswered Questions The reader asks how the tax officials could deliver him a decision on the findings of the tax inspection without conducting the prescribed tax supervision procedure. Why were they not allowed to express their views on the facts and circumstances important for making the tax decision, contrary to the provision of Article 7 of the General Tax Law? How could the tax officials issue a tax decision citing regulations that are no longer valid? The reader further wonders why these two tax officials do not follow changes in legal regulations, as this is also contrary to the provision of Article 22, paragraph 1 of the Civil Servants Act, which stipulates that a civil servant is obliged to ensure a high quality of expertise in their work by improving their professional skills and participating in professional development necessary for personal advancement and increasing the efficiency of public administration. The reader is also astonished that when receiving mandatory forms at the Tax Administration, dates are retroactively entered (the reader proves with attached documents that this is the case), and thus all questions remain unanswered. The tax officials do not believe they are obliged to respond to inquiries from taxpayers.

We invite entrepreneurs to present their problems. Following your writings, by pointing out 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:
e-mail: [email protected]
tel. 01/6333-524
address: Ivica Grčar, Lider,
Savska 41, 10144 Zagreb