ZAGREB, Dec 13 (Hina) - Property illegally acquired during privatisation has to be seized and not taxed, the opposition and the ruling coalition agreed in parliament on Friday debating the so-called tycoon tax, namely the government's
bill on one-off property tax.
ZAGREB, Dec 13 (Hina) - Property illegally acquired during
privatisation has to be seized and not taxed, the opposition and the
ruling coalition agreed in parliament on Friday debating the so-
called tycoon tax, namely the government's bill on one-off property
tax. #L#
Most benches said they would not endorse the bill unless
significant changes were made before the second reading.
The bill's essence is to compare assets before privatisation and
today in order to see if the taxes that were paid correspond to the
amount the taxpayer was obliged to pay, said Finance Minister Mato
Crkvenac.
Benches, however, advocated that illegally acquired property be
confiscated.
Vladimir Seks of the Croatian Democratic Union said tax alone could
not constitute penalty for illegally acquired property. The bill's
provisions would give the tax administration inquisitorial
authority and everything would be turned into a witch hunt, he
said.
Dorica Nikolic of the Social Liberals branded the bill "a law on the
amnesty of economic criminals".
Luka Roic of the Croatian Peasants' Party said illegally acquired
property should be the subject of criminal proceedings and not
taxation. He urged the government to adjust the bill to the legal
system before the second reading.
Josip Leko of the Social Democrats (SDP) said the delicacy of the
issue demanded that sins committed during privatisation be
rectified but not by undermining the rule-of-law. The SDP believes
this can be done and urged the government to find a solution.
Libra's Jozo Rados said the bill should give more weight to criminal
provisions.
Croatian Bloc believes that instead of being prosecuted, illegal
property gain is being awarded and legalised through the payment of
taxes.
Benches of the Democratic Centre and the Croatian Party of
Rights/Croatian Christian Democratic Union were of a similar
opinion.
The bill proposes one-off taxation for property acquired by
avoiding to pay legal obligations or using special benefits during
privatisation, in transactions with the state or local government
units or companies owned by them.
The decision to launch proceedings aimed at establishing the one-
off tax figure would be made by the Tax Administration. The
government provides an alternative, namely that it itself appoint a
commission to do this job.
The debate on said bill marked the end of parliament's 26th session.
An extraordinary one has been called for next Wednesday. when MPs
should debate Croatia's drawing closer to the EU and a new stand-by
deal with the International Monetary Fund.
(hina) ha sb