REGULATORY NEWS: AZTN Issues Negative Opinion on Ministry of Finance’s Bylaw

cerovac 37 April 2014, LPJ Croatia Issue 79

The AZTN issued a negative opinion on the Bylaw on Tax Debt Write-off and Debt Reprogramming proposed by the Ministry of Finance.  The bylaw prescribes the conditions the government and local administrations can carry out tax debt write-off to certain debtors.  The AZTN stated that the proposed measures would significantly reduce revenues of the state and local administrations.  Also, the measure would not be applied in a non-discriminatory manner, meaning that some undertakings would gain an unfair competitive advantage on the market.  Finally, the proposed bylaw could distort market competition between Croatia and other EU member states.

The AZTN points out that it already gave a negative opinion on the proposed Bylaw in March 2013, pursuant to the provisions of the State Aid Act.   The agency’s opinion is not binding on the Ministry of Finance…

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