Fiscalization ‘despite resistance’ continues

The Ministry of Finance in today’s announcement on its website emphasizes that despite significant resistance, fiscalization continues.

-Despite public resistance aimed at stopping fiscalization and combating the ‘shadow economy’, activities and intensified oversight by the Ministry of Finance continue in accordance with legal frameworks- states the relevant ministry.

They note that the measures of forced collection are a result of the irresponsible attitude of entrepreneurs towards the laws, and not tax pressure, as is often interpreted.

They emphasize that the Ministry of Finance does not differentiate among taxpayers and that during oversight, it treats everyone equally.

They highlight that the legal provisions are clear and that everyone must adhere to them, and the Ministry of Finance – Tax and Customs Administration will continue to carry out legally prescribed tasks and authorities with the aim of establishing order in the market and protecting consumers.

The Ministry of Finance also notes that falsehoods regarding the protection of large taxpayers and unequal treatment of all do not contribute to the fight for establishing order and tax discipline.

Additionally, they add, there is a noticeable lack of knowledge and differentiation between regulations on cash transactions and those related to the excise system. In 2012 and 2013, oversight of cash transactions and goods, especially excise goods, was particularly intensified to prevent consumers from being exposed to fraud and the sale of goods of questionable quality, indicating that all introduced regulations and responsible oversight are indeed protecting consumers.

The Ministry thanks once again for the support of the citizens of the Republic of Croatia, who have recognized the efforts of the Ministry of Finance and actively participated in combating the shadow economy and establishing order in cash transactions, and invites them to continue reporting irregularities among taxpayers who do not comply with the laws, while the vast majority do comply.

Among other things, the Ministry of Finance presents the most significant results of the Customs Administration’s work in uncovering the ‘shadow economy’.

In the first half of 2013, 754 inspections and checks were conducted, a subsequent calculation of customs debt exceeding 25 million kuna was executed, and in 102 cases, misdemeanor proceedings were initiated, referring to inspections and checks conducted by customs officers at the taxpayer’s headquarters after the release of goods into free circulation.

Furthermore, illegal importation, amounting to or sale of more than 9,000 kilograms of tobacco, 4,000 liters of alcohol and alcoholic beverages, 345 kilograms of meat, and 365,130 pieces of various types of cigarettes was prevented, with a subsequent calculation of customs debt amounting to 17.6 million kuna.

Oversight was conducted over 750 larger, medium, and smaller sales points (stores), with corresponding warehouses and storage spaces. In 74 cases, irregularities were identified, and in accordance with the Excise Tax Act, a misdemeanor was initiated. For this type of offense, in addition to monetary fines, a protective measure of confiscation of goods is provided, rather than closing the shopping center.

The most common irregularities discovered during the oversight of sales points, warehouses, and smaller sales points related to violations of Article 50 of the then applicable Excise Tax Act in terms of selling alcoholic beverages that were not marked with the Ministry of Finance’s control labels, or violations of Article 63, paragraph 3 of that Act in terms of selling cigarettes at prices higher than those indicated on the Ministry of Finance’s control labels. The highest imposed fine was 200,000 kuna.