GOVERNMENT MOVES WAYS OF SETTLING DUE BUT UNPAID LIABILITIES

ZAGREB, Oct 31 (Hina) - The government on Wednesday forwarded into urgent parliamentary procedure a bill on due but unpaid taxes, duties, contributions and state guarantees, proposing ways of settling debts which have reached 23.5 billion kuna (approx. $2.87 billion) in the last decade. Due to unpaid state claims, the Finance Ministry has blocked 19,500 companies, said Minister Mato Crkvenac. The companies could settle tax and duty liabilities ran up to end of last year by paying them with discounts, ceding property or claims, ceding share portion or stock, clearing them against debts owned by the state, rescheduling, from one to seven years, or otherwise as stipulated by law. The amount of 23.5 billion kuna refers to unpaid taxes and contributions, but if it is added to debts owed all state institutions the figure exceeds 40 billion kuna ($4.88 billion), said Deputy Prime Minister Slavko Linic. He described these figures and the "morality" of non-paying tax liabilities as criminal, the plunder of taxpayers. The principal culprit, according to him, is the former government and ministers and incapable management and supervisory boards. Linic announced "total cleansing" would follow the enactment of the bill. Those who fail to settle their old debts by the end of this year will disappear from the market, the deputy PM said. (hina) ha sb