Business

Tax Inspectors Using Warships to Find Taxpayers

By 27 June 2017

While some people can avoid paying taxes for years, others get a visit by a warship.

The Tax Administration is certainly not one of the most dynamic parts of the state bureaucracy. However, when it wants to, it can be quite resourceful in locating taxpayers, reports Index.hr on June 27, 2017.

In recent days, it has even asked the Croatian Navy for help. A warship with tax inspectors has recently been seen in Sali on the island of Dugi Otok, a place with several hundred inhabitants. The navy was engaged so that the tax authorities could check whether everyone in the small town issues receipts when selling pizzas or ice-creams to tourists. Yes, you read that right.

Most of the Croatian inhabited islands, including Dugi Otok, are connected to the mainland by regular ferry lines. Such lines are good enough for local people and their guests, but not for Croatian tax inspectors. They announce their arrival – which actually might be good news for local businesspeople – by coming in a warship.

Index.hr asked the Tax Administration why the tax inspectors were using navy ships and how much did it cost, but the reply was bureaucratically meaningless, as usual.

“The Ministry of Finance, in accordance with its powers and scope of work, as well as other institutions responsible for dealing with activities on the sea, form an integral part of the Central coordination of authorities responsible for the oversight and protection of the rights and interests of the Republic of Croatia on the sea, according to the Law on Coast Guard. They have the task of supervision and protection of rights and interests at sea under the jurisdiction of the Republic of Croatia. Among other things, the task of all bodies in charge of the sea is to implement joint measures in accordance with pre-planned activities that take place throughout the year in the coastal areas. The coordinated work of several inspection services and the Coast Guard is enabling enhanced supervision measures this year,” says the Ministry of Finance.

So, it can be assumed that such visits by tax inspectors are standard practice. The Ministry did not write anything about this particular case but did not deny it. It is unknown how much such an outing costs, given the massive ship and its crew, which is certainly not free.

It is hard to believe that it is profitable for the state, given that the town has just 500 people. On the other hand, If it were a bigger town, maybe they would even arrive on a frigate or an aircraft carrier.

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