Tax Office Reclaiming Direct from Bank Accounts?

[totalcroatia]

Had a beer with a guy yesterday who has a company doing property in Cro. 2 years ago he sold an a apartment to a Croatian, clean papers, straight transaction, no problems.

He has been having issues getting mail due to change in accountant, and was somewhat surprised to find this week that 5,000 kuna had been taken from his bank account by the local authorities.

Upon investigation, he was told that it was for the unpaid communal taxes on the apartment he sold (and I assume fines) for the last two years. Apparently the new owner didn't register with the relevant authority, and also apparently he is not in a position to change the names as the seller.

While there was sympathy for his case from the local authorities (they had his money, so what did they care), they suggested his only recourse was to sue the new owners, which is hardly worth it and will take years.

I also know of a case where a hotel group is in debt to the opcina, and the latter now have a court order granting them first access to any cash that comes into the official account, but the first case is really quite disturbing.

Anyone else have similar experiences? Anyone have a link to the relevant law (in Cro is fine) and do such powers exist elsewhere on the planet?

[crojoe]

Aug 11, 2011 17:33:37 GMT 1 totalcroatia said:

Had a beer with a guy yesterday who has a company doing property in Cro. 2 years ago he sold an a apartment to a Croatian, clean papers, straight transaction, no problems.

He has been having issues getting mail due to change in accountant, and was somewhat surprised to find this week that 5,000 kuna had been taken from his bank account by the local authorities.

Upon investigation, he was told that it was for the unpaid communal taxes on the apartment he sold (and I assume fines) for the last two years. Apparently the new owner didn't register with the relevant authority, and also apparently he is not in a position to change the names as the seller.

While there was sympathy for his case from the local authorities (they had his money, so what did they care), they suggested his only recourse was to sue the new owners, which is hardly worth it and will take years.

I also know of a case where a hotel group is in debt to the opcina, and the latter now have a court order granting them first access to any cash that comes into the official account, but the first case is really quite disturbing.

Anyone else have similar experiences? Anyone have a link to the relevant law (in Cro is fine) and do such powers exist elsewhere on the planet?

Yes, heard they can do this is you give them no response. Actually, I too just heard that as a business I can freeze the assets of a company that owes me money once I have a lawyer write up the claim and submit it to the finance ministry. I might find out first hand how this works soon as have 1 company that owes me money now for 4 months. It's actually a pretty big company, so that would be weird to freeze their assets and accounts. Would just be nice if they just paid the small amount of money owed me and we all get on with life and be friends again.

[Madgolfer]

On first reflection I think I am in favour of this in principle. The specific case above however does seem rather unfair.

Collecting bad debt is a headache anywhere in the world so anything that can scare or force people into paying seems fair if they have broken the terms of a contract.