In performing their activities companies often use cars and other means of transportation, the tax status of which is considerably different compared to other assets in use. In view of the value added tax and income tax neither all the expenses nor the entire VAT amount for the above stated means are recognized. The article presents the ways of recording the purchase and use of cars when the salary in kind based on the use of a car is not determined and the case when the salary is determined according to the amendments which became effective on 1 January 2010.
Due to the fact that the provisions referring to one's own consumption in the Act on Amendments to the VAT Act, VAT does not any more have the same status as the recognized i.e. non-recognized expenses pursuant to the VAT Act and Income Tax Act. This means that 30% of VAT cannot be deducted as pre-paid tax neither upon purchase of means of transportation nor for the expenses referring to their use. The article presents the amendments to the Act on Value Added Tax referring to the use of means of transportation for private purposes and the effect of such amendments on the accounting and calculation procedures in companies. Keywords:
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
For the last two years small and middle-sized companies have been recording the postponed tax liabilities and the postponed tax assets in their balance sheets. The postponed tax liability and the postponed tax assets cannot remain on these positions. When the corresponding conditions have been fulfilled the tax is considered to be due and the assets have to be settled. This article analyses some examples characteristic of such recording and presenting in financial reports.
Besides the annual financial reports certain companies are obliged to prepare the annual report as well. The article deals with the contents to be included in the annual report, the companies obliged to prepare it, the deadline and the form of the annual report and the institution to which such a report should be delivered.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
Filing of Book-keeping Documents, Records, Business Records, Financial Reports and Tax Returns After completion of tax returns and financial reports companies are obliged to file all the documents and records which refer to the previous year. The article presents what is to be done with the collected documents, how and how long they should be filed and what is to be done with them after expiration of the legally determined period of their filing.
The new changes of the International Financial Reporting Standards (IFRS) and new interpretations represent the consequences of adjustments of IFRS and the US GAAP aimed at harmonization of financial reporting and creation of the unique accounting standards. The new IFRS were published in the Decision on Publishing International Financial Reporting Standards (Official Gazette no. 136/09), which are to be applied upon drawing-up of annual financial reports for the periods starting after 1 January 2010. The author of this article presents the most important changes and amendments of the above stated IFRS. Due to the fact that the adjustment process is still in progress further changes and amendments of the IFRS are expected in the future.
This article is a continuation of the article on the analysis of a company's performance published in RRiF no. 3/10. It specifically deals with the issue of the complete evaluation or review of a company's performance by means of Kralicek Model, SWOT Analysis and vision of the future.
The non-profit organizations having double-entry book-keeping are obliged to prepare a special report for the period January-March 2010 (Form S-PR-RAS-NPF) and submit it to the Financial Agency until 20 April 2010. The article presents the resources of data necessary for drawing up the above stated report, the way of its preparation and the procedure of its delivery.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
S obzirom da Uredba o računovodstvu neprofitnih organizacija nije uredila način ispravaka pogrešno iskazanih prihoda iz protekle godine, knjiženje pogrešno iskazanih prihoda iz protekle godine u tekućoj godini može se ispraviti preko računa rezultata poslovanja.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
According to the Act on Special Tax on Salaries, Pensions and Other Receipts a special tax is to be paid on the receipts of residents which subject to income tax from non-independent work (salary and pension). If the ship crew members in international navigation have been on the sea for less than 183 days, they are obliged to pay the income tax from non-independent work, which has been done on board. Almost until the date of tax returns it was not known how ship crew members were to pay the special tax. The article presents the opinion of the Ministry of Finance on this issue.
The IPA Program was established by the Directive of the EU Council. The main goal of the IPA Program is to support the countries – candidates and prospective candidates in order to improve their activities in the pre-accession period of membership. The article deals with the above stated grants from pre-accession programs which are given to the best projects. These grants are special-purpose grants, defined by the contract and non-repayable if they are spent according to the provisions of the contract. If they have not been spent for a special purpose, they are to be re-paid.
In the beginning of March the European Commission presented the draft of the new economic strategy for the next ten years. The goals of the strategy comprise employment, economic growth based on the pure energy and the obligations of the member countries to take measures for their own contribution in realization of the economic goals. The article also states the indicators of strategic goals in figures: unemployment rate, gross domestic product, reduction of energy consumption, increase of education level, etc.
New companies obliged to apply the Act on Prevention of Money Laundry and Financing of Terrorism have difficulties with drawing-up of the by-laws regarding the application of the measures, acts and procedures for prevention and revealing of money laundry and financing of terrorism. Therefore, this article provides an example of by-laws for the companies obliged to apply them: audit companies, independent auditors, physical and legal persons performing the accounting services and tax advising.
The financial crisis of a company is characterized by overindebtedness, insolvency, irrentability, etc. Such a crisis is often caused by the inappropriate size and structure of assets and the source of financing in the balance sheet and the irrational managing and using of assets and sources. This article stresses the goals and possible measures of restructuring and sanation of a company's balance. Due to the limited space the article is divided into two parts. The first one deals with the goals and measures of restructuring as well as the sanation of the sources of financing, whereas the second one analyses the goals and measures of restructuring and sanation of assets.
The article presents an accounting procedure with the tax after deduction paid by domestic companies to foreign companies for certain services i.e. the rights to intellectual property. The tax after deduction is paid on the services determined by the law and provided by foreign legal persons. Such services include business councelling, audit, tax advice, market research, etc. The tax after deduction is paid on the interests too, except for some exceptions determined in the provisions of the Art. 31 of the Profit Tax Act. The tax after deduction is also paid on the payments for author's rights and intellectual property.
The Act on Excise Duties comprises three categories of harmonized products which subject to excise duties: tobacco products, energy and electric energy and alcohol and alcoholic drinks. The category of alcohol and alcoholic drinks includes 5 types of products: bier, wine, other drinks made by fermentation except bier and wine, inter-products and ethyl alcohol. The author of this article analyses each product belonging to the group of alcohol and alcoholic drinks as determined by the above stated Act and its imprementation provision – Rulebook on Excise Duties.
Since its foundation the European Union has been creating and developing the Common Market which is determined as the area without internal borders providing free movement of goods, persons, services and capital. One of the obstacles of realization of the Common Market represent, among other things, different national taxation systems. In order to create the space without internal borders it is necessary to cancel national taxation borders and differences, called the prohibition of taxation discrimination, which is the topic of this article.
The changed Decision on collection of data for preparation of the balance of payments, foreign debt and international investments has resulted in the changes within the existing research on direct and other equity securities, debt securities and the research for the needs of the statistics referring to loan businesses abroad. This article comprises the amendments regarding the statistical research based on equity securities, including the basics of the research. The research on direct and other equity securities in a foreign country and from a foreign country and debt securities in a foreign country is conducted by the Statistics Department of the Croatian National Bank within the preparation of the balance of payments of the Republic of Croatia.
Craftsmen and other free professions are principally obliged to pay the income tax, but can according to their own wish change the way of taxation and instead of paying the income tax they can decide to pay the profit tax. Besides the voluntary change of taxation there is a legal obligation when all the conditions have been fulfilled. After obligatory five years spent in the above stated system they can, if they do not fulfil the determined criteria, transfer again to the taxation with income tax. Due to the fact that upon the change of taxation system the principles according to which events in business records are recorded are also changed, at the beginning of the taxation period it is necessary to create the base on which the business events during the taxation period will continue to be recorded.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
When all the determined conditions have been fulfilled, the receivables for the compensation of salary for the period of sick-leave (depending on the type of sick-leave) are to be required from the Croatian Institute for Health Insurance or the Croatian Institute for Health Protection at Work. Employers may cancel or clear the receivables for sick-leave up to the amount of the debt for unsettled contributions. Accordingly, the Rulebook was made regarding the procedure of clearance of receivables based on the right to return of the paid compensation for salary and the right to compensation for salary with the obligation based on the debt for contributions. The article analyses the procedure of clearance of receivables based on the righ to return of the calculated compensation of salary with the obligation based on the debt for contributions when the same person claims for receivables and owes contributions.
The introduction of obligatory payment of contributions on all the receipts realized outside the employment status such as the receipts according to the contract on author's fee or any other receipt according to any type of contract for which the obligation of obtaining the status of an insured person does not exist has resulted in the question which rights are realized based on the paid contributions? The same issue refers to the employed persons aditionally engaged in crafts business or a similar business, who simultaneously pay the contributions from salaries and the contributions on the realized annual income. The answer to such questions is given by the associate from the Croatian Institute for Pension Insurance.
There is a substantial number of disturbed relationships between employers and employees which may result in extraordinary termination of contract on employment (without respecting the notice period), by the employer (which is more often) or an employee. There is a question if such disturbed relationships have a certain quantity and quality when considering all the circumstances and interests of the both parties (employer and employee) the continuation of employment is not possible, which depends on the evaluation of each situation separately. In the practice of the Supreme Court of the Republic of Croatia there is a large number of employees whose behaviour can be the reason for an extraordinary termination of the contract on employment. Although each case is specific and is evaluated with regard to the circumstances of such a case, the court practice may help employers in finding the reasons for extraordinary termnation of the contract on employment. The article presents the court practice, which is also applied in the new Labour Act.
According to the European regulations a share capital can be increased by investments of objects or rights without the obligation of auditing the increased share capital. This can be realized under certain circumstances when such increase of the share capital is possible. All management members and executive directors of a company can be in person solidary responsible to the creditors to whom they gave incorrect data and caused damages. The article analyses the individual and collective responsibilities of company's organs for the above stated criminal act.
