General Tax Law was applicable from 1 January 2003

On 1 January 2009, a new General Tax Act (GTA) came into force.

It was amended in 2012

The reason for introducing the new act was to provide more precise definitions of certain legal concepts in order to improve the application of taxation procedures and thus ensure better protection of taxpayers’ rights.

Moreover, thanks to the new act, the Croatian tax legislation complies with the European one, particularly as concerns the administrative cooperation and exchange of information among the EU Member States.

The General Tax Law regulates the legal relations of taxpayers and tax authorities that are common to all taxes

It does so: systematically (sustavno), integrally (cjelovito) and uniformly (na jedinstven način)

Taxpayers and the state Taxpayers are all natural and legal persons

Natural person – fizička osoba Legal (artificial) person – prava osoba

Not equal – the state makes the rules and taxpayers are in a subordinate position

Taxpayers have obligations with respect to the state, but they also have formal and material rights

Main tasks:- to carry out the taxation procedure (voditi

porezni postupak)- to control its implementation (kontrolirati

njegovu provedbu)

Lawfulness The application of tax provisions Objectivity Right to appeal The keeping of books and records Evidence Auditing Good faith of all participants of the tax procedure Use of standard language and writing Economic approach

Lawfulness - zakonitost The application of tax provisions – primjena poreznih propisa Objectivity - objektivnost Right to appeal – pravo na žalbu The keeping of books and records – vođenje knjiga i evidencije Evidence - dokazivanje Auditing – inspekcijski nadzor (revizija) Good faith of all participants of the tax procedure – postupanje u dobroj vjeri svih sudionika porezno-pravnog odnosa Use of standard language and writing – upotreba službenog jezika i pisma Economic approach – gospodarstveni pristup

Those who are involved in the relationship covered by the tax law are obliged to respect all legal rules

In the taxation procedure, the tax rules that were in force at the time of the occurrence of the fact on which the taxation is based will be applied.

During the taxation process, the tax authorities establish the facts objectively and conscientiously, irrespective of whether they tend to be to the benefit or the detriment of the taxpayer.

A taxpayer can file complaints against tax instruments.

The taxpayer is obliged to keep records in accordance with the current book-keeping regulations.

Both the taxpayer and the tax authority have to prove the facts in the tax procedure.

Auditing is carried out with respect to both small and large taxpayers.

All participants are obliged to behave properly, with good intentions, cooperatively and conscientiously.

Taxation facts are established according to their economic importance, which means that every acquisition of some income is taxed, irrespective of whether this is a legal or an illegal business.

1. Find the appropriate subtitle for each paragraph:

The right to be informed Protection of human dignity The right to response Protection of confidentiality of data and

privacy

The law also enshrines the protection of human rights such as: ___________________________________: taxpayers have the ability and the

right to speak their mind about all the essential facts related to the adoption of any decision (ruling or judgement) before that decision is made.

___________________________________: the taxpayer is bound to give the tax authority the truthful data that are essential in the taxation procedure, and the tax authority is bound to preserve the confidential data in the interest of the taxpayer. In this manner, the privacy of the taxpayer is protected. If the taxpayer renounces in writing the right to the protection of privacy, these data can be announced in public.

___________________________________: in the tax procedure, tax authorities may not threaten the reputation, dignity or honour of the taxpayer.

___________________________________: the tax authority may not use forcible payment methods (by seizure, for example) to take away the source of information for the taxpayer.

The law also enshrines the protection of human rights such as: The right to response: taxpayers have the ability and the right to speak

their mind about all the essential facts related to the adoption of any decision (ruling or judgement) before that decision is made.

Protection of confidentiality of data and privacy: the taxpayer is bound to give the tax authority the truthful data that are essential in the taxation procedure, and the tax authority is bound to preserve the confidential data in the interest of the taxpayer. In this manner, the privacy of the taxpayer is protected. If the taxpayer renounces in writing the right to the protection of privacy, these data can be announced in public.

Protection of human dignity: in the tax procedure, tax authorities may not threaten the reputation, dignity or honour of the taxpayer.

The right to be informed: the tax authority may not use forcible payment methods (by seizure, for example) to take away the source of information for the taxpayer.

To keep books/records To apply rules/laws To file a complaint (against) To prove the facts in the tax procedure To the benefit of v. to the detriment of the

taxpayer To be in force