Christmas time is traditionally the time of giving gifts,which is becoming more and more commercialised. This is the time when we show appreciation and gratitude to our business partners and employees as well as to our dearest in private life. Our legislation offers a possibility of untaxable payments on this occasion, which gives opportunity to employees to receive some bonuses,where as employers have a large scope of combinations. This article deals with the issues of tax acceptable gifts, promotion and entertainment costs and the way of their recording in the entrepreneur’s accounting.
According to the Tax regulations an employer can make nontaxable payments (under certain conditions) to the employees for the transportation costs to and from work. If the conditions have been fulfilled according to which the compensation of the above stated costs can be made nontaxable, the paid amount represents income from independent labour. The article contains instructions to the employer what to do upon payment of transportation costs to/from work to the employees.
Long term tangible and intangible assets are revaluated according to the requirements of the IAS no. 16 and no.38 taking into consideration the accounting policies adopted by the management aimed at objective and real presentation of assets, liabilities and the capital amount of the company. In view of these accounting procedures the experts in this field are faced with the problem whether and when the revaluation of the assets should be recorded in the tax base and in which ratio. This article deals with the issues of the need to revaluatet angible and intangible assets and the way of their including inthe profit tax base in accordance with the Act on Profit Tax.
This article deals with the accounting of cow milk production on the farms which prepare their business records according to a double-entry book keeping, which includes legal persons and family farms that are obliged to pay profit tax. These farms can prepare their business records according to unrevised IAS or revised ISFR (revised IAS) pursuant to the Accounting Act or their own decision. The basic difference between these two accounting types is the application of the IAS no. 41 – Agriculture, which comprises substantial deviations in income and expenditures of such farms.
Upon annual stock-taking (inventory) the receivables from buyers which are likely to be irrecoverable, should separately be recorded. This is important for the realistic and objective presentation of the positions in the financial reports. The same applies to the liabilities. The article thoroughly explains the role of an accountantin listing i.e. estimating and adjustment of receivables and liabilities including all the procedures to be done.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
The reservations of expenses referring to the present effects are recorded as expenditure of the current period only if they follow the definition stated in the IAS no. 37. Except the IAS no. 37, other standards of reservations are defined in the Act on Profit Tax, which stipulates the conditions of recognising some specific types of reservations. All other types of reservations are not tax acceptable.This article deals with accounting records of reservations and tax recognition of these expenses.
Autori: Dubravka KOPUN, dipl. oec. i ovl. rev. Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
Before drawing-up of annual financial reports it is necessary to check if your accounting propositions are in accordance with the usual procedures and regulations. This article gives notes and instructions which may help in case of doubts or some oversights, where by it is assumed that business events have been recorded in the Ledger according to the date when they emerged and on analytical accounts according to the type of assets, the deadline of settlement of liabilities and the nature of expenses.There is a possibility of making mistakes, although some subsequent events can sometimes determine other accounting records than initially presented. Therefore, it is recommended to check if all the presented data are in accordance with the professional requirements, accounting standards and regulations before you draw up the Final (annual) Balance Sheet and the Profit and Loss Account for the year of 2007.
Autori: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev. Mr. sc. Šime GUZIĆ, dipl. oec. i ovl. rač. Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač. Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač. Zrinko TRCOVIĆ, dipl. oec.
The article deals with the examples of accounting of non-profit organisations. Presented is the recording of the financial aid acceptance from the Budget used for the loan repayment of the association. There is also an example of recording a non-repayable financial aid.
Autor: Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The Labour Act indicates that the employee’s right on gifts to their children is to be regulated by the collective agreement, the labour relations by-laws or the contract on employment. The Rulebook on Profit Tax stipulates the amount which can be spent on employees’ gifts without taxation.This means that it should first be determined according to which legal document this right is to be exercised and then up to what amount the payment can be made to anemployee.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec., ovl. rač. i ovl. rev.
Political parties are legal persons which perform political operations in accordance with the goals determined by their programme and statute. In principle they operate publicly. In view of the public nature of their operations it is understandable that the public is interested in their operations, especially their financing. They want to know if they are in accordance with our current regulations.The supervision of the operations of political parties is partially carried out by the State Audit Office. The article deals with all the issues they have to pay attention in order to secure an unreserved opinion on their financial reports and business operations.
Autori: Šima KRASIĆ, dipl. oec. Mr. sc. Nediljka ROGOŠIĆ
In their every day business operations with foreign countries the residents often settle liabilities and receivables through one of the types of clearing payments. The legal basis for clearing payments i.e. changes in obligatory relations are defined in the Act on Obligatory Relations. This Act stipulates the legal nature of clearing payments but not their conductibility from the aspect of the regime backed regulations .Due to the fact that residents use clearing payments more often than before, they are faced with a number of uncertainties referring to the conditions and procedures of such payments. The article gives a review of legal regulations which are to be taken into account upon such transactions including some concrete cases.
Autori: Mr. sc. Iva KOPECKI Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Due to a larger liberalisation of the capital transaction foreign markets have gradually been opened up resultingin an increased number of transactions with foreign stocks. In order to simplify stock trading, the transactions by our residents with the stocks of foreign issuers are becoming more common. Therefore, it is essential to provide more detailed explanations of application mechanisms of such transactions to the Statistics Department of the Croatian National Bank.The article describes the procedure of drawing-up there port on transactions with stocks from foreign issuers.
Entrepreneurs who opened a business in 2007 and did not initially enter the VAT system should make a decision on their tax position by the end of 2007, which means whether they want to or are obliged to pay the value added tax. The same obligation refers to other entrepreneurs who were not within the VAT system in 2007 but crossed the turnover limit of 85,000.00 HRK and should enter the VAT system on 1 January 2008.Correspondingly, the companies within the VAT system which made a turnover below the above stated amount in 2007 can make a decision to step out of the VAT system. December, i.e. the end of the business year is mostly the time when entrepreneurs make a decision on changing their tax status no matter whether it refers to entering or leaving the VAT system. The article deals with the procedures of entrepreneurs who will be obliged to pay VAT in 2008 or will step out of the VAT system.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
Through the amendment of the Act on Profit Tax referring to education and professional training the possibility of double recognition of expenses to a profit tax payer does not exist any more. The possibility of tax benefits for education and professional training has existed since the enactment of the Act on State Incentives for Education and Professional Training. The provisions of this Act, which are based on completely different propositions than before, can be applied to the current year (2007) if a company can collect the documents on the expenses for general or specific education or professional training and apprenticeship.
Giving advice on taxes is always connected to the risk of possible mistakes. Even in the case when westick to the opinion of the Tax Authorities we cannot be completely sure whether the tax supervision or the court will understand the tax issue for which we have been sure it does not result in tax liabilities. Never the less, the situation can be different. This happened with the ten-year-old interpretation of the emerged tax liability in construction business, which was applied in the relation contractor-investor. The decision made by the Administrative Court has once again revealed all the legal uncertainty in view of taxes.
Autor: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
The Republic of Croatia has since this autumn begun more dynamic negotiations with the European Union, which means more intensified preparation processes of entering the EU in all the fields including taxation. Due to the fact that the year of 2009 is in official documents planned as the year of entering the EU, not depending on the real date of joining of the Republic of Croatia to the EU, it is necessary to make all the preparations for joining the unique EU market. The article deals with the perspectives of such an act.
This article deals from the accounting taxing and bookkeeping perspectives with specific features of allowed and excessive losses – deficits of goods and stocks, which are determined by the annual stock-taking of craftsmen and the others who prepare their business records according to the income regulations. The annual stock-taking represents one of the important preliminary operations upon drawing-up of the annual reports in order to determine the real position of the assets compared to the position presented in the business records.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
Craftsmen are in principle obliged to pay income tax, but can be profit taxpayers too. The taxation model according to the law or voluntarily can be changed only at the beginning of the tax year (calendar year) according to the request filed to the Tax Administration within 15 days after expiration of the year. This article draws the attention of craftsmen to specific procedures that have to be carried out if they switch to another taxation model voluntarily or according to the law.
Taxpayers who are engaged in independent activities of craft work or free-lancing are obliged to determine their income as a tax basis according to the official business records in accordance with the Act on Income Tax and its stipulation the Rulebook on Income Tax. The natural persons engaged in independent activitiesof craftwork can, with fulfilment of legal conditions, chose the payment of lump sum of income and profit taxes and are obliged to file the registration in the Taxpayer Register.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
On 1 October 2007 the Act on Physical Planning and Construction came into effect. The Act stipulates some changes referring to the utilisation of buildings. In view of the situation so far the difference is the fact that thebuilding inspection certificate is not the only document which permits utilisation of a building and that the permits for performance of activities can be obtained even if the building does not have a building inspection certificate. The above stated changes affect favourably a large number of entrepreneurs who carry out their activities in the area for which the building inspection certificate has not been obtained and who had to adjust their activities to special regulations. Such changes have resulted in a reduced number of buildings for which building inspection certificates are to be issued. This article deals with the legal status of buildings in view of their utilisation and issuing the decision for performing of activities.
Raznolikost životnih situacija u radnim odnosima odražava se i kroz sudsku praksu u tom pravnom području. U drugostupanjskoj presudi Županijskog suda u Varaždinu donesenoj po žalbi iznosi se stajalište o utjecaju rješenja Hrvatskog zavoda za mirovinsko osiguranje (dalje: HZMO) o priznanju prava na invalidsku mirovinu zbog profesionalne nesposobnosti za rad na prestanak radnog odnosa. Vrhovni sud Republike Hrvatske (dalje: VSRH) u svojoj revizijskoj odluci zauzima pravno stajalište u situaciji u kojoj je sklopljen sporazum o prestanku ugovora o radu, a poslodavac nakon toga otkaže radni odnos. Postavlja se pitanje na koji je način radni odnos prestao: sporazumom ili otkazom (koji je oglašen nedopuštenim). VSRH zauzima stajalište da je u toj situaciji ugovor o radu prestao sporazumom. Pitanje je važno s obzirom na različite pravne posljedice vezane za način prestanka ugovora o radu. VSRH u drugoj revizijskoj odluci razmatra pitanje razloga i postupka otkaza ugovora o radu. O svemu tome podrobnije u nastavku.
Dostava pravomoćnog rješenja o mirovini zbog nesposobnosti za rad
Prestanak ugovora o radu - sporazum radnika i poslodavca
Redoviti otkaz - kad poslodavac redovito zapošljava 20 radnika ili manje
In the business world compliance means the ability of respecting certain rules and work in accordance with the defined guidelines aimed at fulfilment of legal provisions and achievement of quality which provides competitiveness on the market. The article explains the need for compliance of the Croatian legislation to the well-known systems such as Sarbanes-Oxley Act, Basel II, Solvency II, Corporate Governance or ISO Norms. These systems imply and require common steps in defining and elimination of risks, guaranteed fulfilment of legal provisions and the guarantee that the system of internal control enables auditing.
Autori: Mr. sc. Nevenka CRNEKA ČUDINA Dr. sc. Dino DOGAN