Government moves possibilitiy of settling tax debt in instalments

Taxpayers who owed taxes at the end of last year because of the economic crisis but have been regularly paying taxes this year will be able to settle the debt in instalments over 30 months at the interest rate of 8.3 per cent, according to a bill on a special measure for the collection of tax debts resulting from the economic crisis which the government moved on Saturday.

The measure refers to taxpayers who have been regularly paying taxes in 2011 or will pay them at once when applying for the settlement of last year's debt in instalments, for which they can apply within three months of the bill's enactment, Finance Minister Martina Dalic said at today's government session.

The measure supports the continuity and sustainability of budgetary revenues as well as entrepreneurs in overcoming the consequences of the economic crisis, she added.

Dalic stressed that this measure in no way supported or rewarded defaulting operations or payments.

"Taxes must be paid regularly. The Tax Administration will pursue and intensify its activities for the collection of taxes," she said.

Also today, the government passed a regulation on the implementation of the law on a guarantee fund for encouraging economic development which defines models, terms and deadlines whereby the Croatian Bank for Reconstruction and Development issues guarantees via auctions for commercial banks.

Dalic recalled that the third auction according to the A+ model was held on March 31, when HRK 400 million was allocated. In March, HRK 600 million of the HRK 1.1 billion envisaged for this year was allocated.

Dalic said interest among entrepreneurs was high, voicing confidence that this would increase their liquidity and step up economic development.

Administration Minister Davorin Mlakar said that the ministries of health, the interior, finance, the economy, and justice had signed a protocol on cooperation aimed at ensuring prompt and efficient bankruptcy proceedings in companies whose bank accounts were blocked or which met bankruptcy requirements and had no employees.

"We have more than 16,000 such businesses, which have accumulated HRK 11-12 billion in liabilities," said Mlakar.

The government also sent to parliament amendments to the law on government employees as well as bills of amendments to about 20 other laws which have to be aligned with the Administrative Procedure Act.