How I Became a Subject of DORH Due to Incorrect Calculation of HGK Membership Fee

I have publicly advocated the thesis multiple times that a well-organized and efficient Tax Administration should actually be the key institution for the state’s anti-corruption and anti-clientelism efforts. Because when revenues, expenses, and tax obligations are compared, discrepancies become immediately apparent, especially with today’s informatization. It was like that until I directly realized how powerful the Tax Administration already is, and the entire system for uncovering financial violations and misconduct is so well programmed and fine-tuned that the red light turns on and the entire state mechanism for bringing the culprit to justice is activated even for a debt of three and a half euros. And that is a non-existent debt.

I know that I know, but I do not know

So, the story was supposed to be extremely simple. A little over two years ago, I decided to close the company. It was not a company aiming for development or new employment, but primarily a form through which I could perform various jobs in the fields of journalism, publishing, film… The good news was that the state had simplified the process of closing companies that have no debts to the state and creditors, and that everything could be done in a few days.

Ideal for my case: creditors were paid, accounting calculated the debts to the state, verified them with tax officials, everything was duly paid… And the process was brought to an end, the court issued a decision on the dissolution of the company, it was published in the Official Gazette. It did not take exactly two days, but about two months, but everything went smoothly and simply. And I believed that this was the end of the story. However, that decision becomes final fifteen days after publication in the Official Gazette, if no one files an objection. But I know that there is no one to file an objection because all debts have been settled. Or at least I think I know.

About a year after the company was dissolved, I received a call from the accounting department, inquiring whether I had been contacted by the commercial court archive to submit documentation. I had not been contacted. At first, we thought: ‘There was an earthquake, so they are reorganizing, mitigating the consequences…’ But then we hear that they have organized, calling some people, but not me. After that, I called the commercial court archive. Getting through to them by phone is like hitting the lottery because, supposedly, there is only one archivist who also answers the phone, and only for one hour during the working day.

As far as I remember, phone calls were accepted from 1 PM to 2 PM. Mobile phones probably have not reached the commercial court archive yet. But there is a catch: from 1 PM to 2 PM, the line is constantly busy. And no one answers for the rest of the working day. After a few weeks, I finally managed to reach the archivist. But that is where the real plot begins.

The archivist tells me, in confidence, that my company has not been dissolved at all because there is some objection due to a debt! And that I should try to contact the judge at the commercial court handling the case. What debt? Which judge? I somehow got in touch with the judge. The judge says, the case is with DORH. The Tax Administration filed an objection due to a debt to the state of 26 kuna (3.5 euros at the new rate)! And he had to submit it to DORH ex officio. But he did not have to inform me. Apparently, it concerns an unpaid membership fee for the Croatian Chamber of Commerce.

How to explain the absurdity

After brief consultations with the accounting department, we seek help from the tax officer. And indeed, without any problems, we receive confirmation that the company has no tax debt. Armed with the confirmation, I voluntarily go to the County State Attorney’s Office, in Zagreb. To preempt the arrest. I am thinking about how to explain this absurdity to the lady who receives clients: that I am, supposedly, their subject because I have a falsely reported company debt of three and a half euros that I am unaware of and a confirmation from the tax office that there is no debt.

And the lady laughs. She says, you are not the first. There are many like you whose system incorrectly calculated the HGK membership fee. And all of them have become subjects of DORH. But DORH cannot stop the prosecution based on the confirmation from the tax office. They need confirmation from the headquarters, from the Tax Administration, that they are withdrawing from the prosecution. A few more months passed.

And then I did something I usually do not do: I sent a message through connections that I would publish this. I do not know if it worked, but the confirmation arrived promptly, and DORH halted my prosecution on behalf of the state – for three and a half euros of false debt. I finally received a final decision on the closure of the company through an expedited process. It took more than two years. I do not know what is happening with other similar false debtors that DORH prosecutes on behalf of the state. But I know that I will no longer call for the strengthening of the Tax Administration. I see that it is strong enough to react even for three and a half euros of a non-existent debt.