Tax Authority Collected Over 351 Million Kuna from ‘Bad’ Employers

After the publication of two lists of tax debtors, a total of just over three thousand debtors paid around 202.9 million kuna either in full or reduced their debt below the threshold for publication, according to data released by the Ministry of Finance in its reports on operations this year.

The Ministry has published reports on its website regarding the work of the Ministry in a narrower sense, the Tax and Customs Administration, which provide an overview of the laws enacted this year, legislative proposals currently in government or parliamentary procedure, those undergoing or having completed public discussion, and subordinate legislation, while also presenting data on achieved savings and rationalizations and announcing activities for the next year.

The reports also contain data on the results achieved related to the reprogramming of tax debt, the publication of the list of tax debtors, the implementation of regulations that prevent the payment of salaries without the payment of contributions, and the procedures for determining discrepancies between paid taxes and acquired assets.

Tax officials have so far issued 193 decisions and compiled 69 records in the procedures for determining discrepancies between sources of income and acquired assets, with a discrepancy amounting to 261 million kuna established, and tax calculated on that basis amounting to 92.06 million kuna.

For the first time, the list of tax debtors was published on the Tax Administration’s website at the end of July, which included over 102 thousand debtors – legal entities, craftsmen, and citizens, whose tax debts are older than 90 days.

After its publication, 798 debtors were removed as they settled their debts in full, paying 84.2 million kuna, while 1,283 debtors made payments after which their debts fell below the amount that is the threshold for publication, and these debtors paid around 68.2 million kuna.

The second list of tax debtors was published on the last day of October, and after its publication, 379 debtors paid their debts in full, contributing 28.4 million kuna to the state, while 572 debtors reduced their debts below the threshold for publication, paying just over 22 million kuna.

With the beginning of May, the implementation of the Regulation that prevents the payment of salaries without the payment of contributions began, and by December, the Tax Administration collected 351.1 million kuna from such ‘bad’ employers.

This year, the state also enabled entrepreneurs to reprogram their tax debts (in March and from mid-July to mid-August), for which tax officials received a total of 12,932 requests. Of these, reprogramming of tax debt was approved for 7,182 entrepreneurs, with the total amount of approved reprogramming being three billion kuna.

Data as of October 31 shows that the total due debt under approved installments of the reprogramming amounts to 332.3 million kuna, of which 69.8 percent, or 232.1 million kuna, has been paid.

For a one-time payment of the principal tax debt, along with the waiver of interest, a total of 5,366 requests were submitted, and by the end of November, interest waivers were approved for 2,764 entrepreneurs. On that basis, a total of 245.4 million kuna of principal tax debt was paid, and interest of 120.6 million kuna was waived.

In its operational report, the Ministry of Finance also presents several key achievements of significance for this sector this year, from the reorganization of the Customs and Tax Administration aimed at better efficiency, revenue collection, and adaptation to EU standards, to reducing expenses through additional business rationalization and better resource management, as well as an active role in the financial restructuring of the economy through the Financial Operations and Pre-Bankruptcy Settlement Act, aimed at reducing illiquidity.

The Tax Administration announces the introduction and implementation of the property tax law and the beginning of the establishment of a fiscal cadastre among the projects for the next year.

Among the projects that the Ministry of Finance plans for the next year are, among others, a larger number of positively concluded pre-bankruptcy settlements, the privatization of HPB and Croatia osiguranje, healthcare rehabilitation, etc.