Companies being annulled for not filing accounts?

[totalcroatia]

Am not working in property any more (life is so much simpler) but interested to hear if anyone has any more info on this below, which was posted on my site by someone who has helped many foreigners here with their property problems.

total-hvar.com/index.php/hvar-blog/item/does-your-company-own-hvar-property-a-gentle-warning

According to her, the authorities have started dissolving some companies which have not filed accounts for some time. As many bought properties via the company route, thought it might be of interest, but also interested to hear if anyone else has heard anything about this.

cheers Paul

[Madgolfer]

This is a major issue which will affect a lot of people.

Firstly, anyone who has not filed yearly accounts is exposed.

Secondly, this issue is also linked to the "dormant" companies thread being discussed.

Thirdly this issue is also linked to the empty property tax/unused land taxes being discussed.

Lastly it is also linked to the "agricultural" land law which requires foreigners to set up a company in Croatia to buy certain types of property. (Anti reciprocity agreement etc)

Some people might see a common thread developing here.

[totalcroatia]

confirmation today that the first foreigner here has had his company annulled (Canadian) after failing to pay. All his company does is own the house, and he was a few years behind on his accounts. Anyone know what happens to the ownership of the property in cases like this?

[Madgolfer]

Property likely to be sold at auction for minimal amount, HR Govt as prefered creditor takes largest slice of cake and unsecured creditors would be left with.......

[crojoe]

Nov 5, 2012 19:17:32 GMT 1 totalcroatia said:

confirmation today that the first foreigner here has had his company annulled (Canadian) after failing to pay. All his company does is own the house, and he was a few years behind on his accounts. Anyone know what happens to the ownership of the property in cases like this?

Did the person get a letter or just saw it on the government web site? I ask as one of my little used companies got closed last month due to the tax office screwing up (know as loosing the books in a mile high pile of tax returns) and FINA thought the company was closed, so business court closed it (I'm very happy so far). Here's hoping that that is it, as I'll keep the PDV owed since they owed me some money from when I imported stuff from abroad. If nothing happens I'll be wishing I had stacked up a 100,000 Kuna PDV bill. Hehe!

[mh]

I think the company directors should be prosecuted and fined - same like in their respective countries. I also think all companies that are established with no intention of doing business should be closed and their assets seized as they are used with the intention to defraud Croatia and Croats. Same woulod happen in any country you - dear foreign property investors - are coming from. If in any doubt, please check with your own government!

[totalcroatia]

Hi Crojoe,

Yes a letter, and also got confirmation from someone who knows the tax office very well.

cheers Paul

[Madgolfer]

It is simple and cheap enough to keep up payments with a bookkeeper and filing of accounts etc. Assuming these Canadian people were told this and what the requirements of owning a company in Croatia were, and that nothing "unlawful"has gone on, then it is their own fault in my opinion.

I wonder where would Croatia be now without all us rich property investors?

[crojoe]

Nov 7, 2012 7:46:17 GMT 1 totalcroatia said:

Hi Crojoe,

Yes a letter, and also got confirmation from someone who knows the tax office very well.

cheers Paul

Good for you then as we didn't get any letter(s) and found out it was closed last month. But again, not sure what it really means. Does closed mean closed or is one still accountable say up to 5 years after the fact say to the tax office? I can't find anyone with inside knowledge about it.

[crojoe]

Nov 7, 2012 8:49:32 GMT 1 Madgolfer said:

It is simple and cheap enough to keep up payments with a bookkeeper and filing of accounts etc. Assuming these Canadian people were told this and what the requirements of owning a company in Croatia were, and that nothing "unlawful"has gone on, then it is their own fault in my opinion.

I wonder where would Croatia be now without all us rich property investors?

In my case we have an accountant and books where submitted but the tax office screwed up and actually lost the filed documents. It's all a huge pile of papers and documents stacked up in their office, a miracle they can get anything done from my point of view.

[gwen]

I read in this article -
One advantage of purchasing (or selling) a company owning a single property is exemption from the 5% purchase tax (stamp duty). Another is that the transaction is exempt from capital gains tax (applicable for an individual who re-sells a property within three years of buying it), although a re-sale at any time is subject to corporate tax.

I have a company that was set up to manage one property - and I had to pay 5%. Was this law change or did my accountant make a mistake when the government asked me for the 5%.

[upthevilla]

If your bought a company that owns a property then you do not pay the 5 %

If you set up a company to buy a property then you pay the 5 %

If you bought property as a private citizen then you pay the 5 %

[Carol]

Nov 11, 2012 19:29:46 GMT 1 upthevilla said:

If your bought a company that owns a property then you do not pay the 5 %

If you set up a company to buy a property then you pay the 5 %

If you bought property as a private citizen then you pay the 5 %

Totally agree. The way I think of it is if the name printed on the ownership page (vlasnicki list) changes, then 5% is due. If it does not change then nothing is due.

[gwen]

Thank you for the clarification, that was helpful.