Time to Stop Avoiding the Tax Avoidance Issue in Croatia? A Proposal Based on Recent Developments in the European Union

Financial Theory and Practice, 38(1), 2014

26 Pages Posted: 24 Oct 2017

See all articles by Stjepan Gadzo

Stjepan Gadzo

University of Rijeka - Faculty of Law; IBFD

Irena Klemencic

Institute of Public Finance, Zagreb

Date Written: September 21, 2014

Abstract

The paper takes a tax policy perspective in analysing the approach to tax avoidance in Croatia and expounding its existing shortcomings. It is argued that Croatia is yet to develop a coherent legislative framework suitable for curbing tax avoidance in an equitable, efficient and simple way. One instrument that has hitherto been ignored is the general anti-avoidance rule (GAAR), a keystone of anti-avoidance policies in other countries. The authors propose the introduction of a specific GAAR, based on recent developments in the European Union (EU), in Croatian tax legislation. This proposal is supported by multiple tax policy arguments. Special emphasis is placed on the requirements of legal certainty, a traditional weak spot of the Croatian tax system. The proposal is put in the context of the persistent quest for a sustainable public finance system in times of crisis.

Keywords: General Anti-Avoidance Rules; Tax Avoidance; Tax Law; Tax Abuse

JEL Classification: K34

Suggested Citation

Gadzo, Stjepan and Klemencic, Irena, Time to Stop Avoiding the Tax Avoidance Issue in Croatia? A Proposal Based on Recent Developments in the European Union (September 21, 2014). Financial Theory and Practice, 38(1), 2014. Available at SSRN: https://ssrn.com/abstract=2499160

Stjepan Gadzo (Contact Author)

University of Rijeka - Faculty of Law ( email )

Hahlic 6
Rijeka, 51000
Croatia

IBFD ( email )

H.J.E. Wenckebachweg 210
Amsterdam, 1096 AS
Netherlands

Irena Klemencic

Institute of Public Finance, Zagreb ( email )

Smiciklasova 21
Zagreb, 10000
Croatia

Register to save articles to
your library

Register

Paper statistics

Downloads
15
Abstract Views
84
PlumX Metrics