Pursuant to Art. 4 paragraph 2 of the Act on Tax Advisory, a Contract on Tax Advisory Services shall be concluded in writing and it shall contain all essential elements of contractual and legal relations, including the provisions on trade secret confidentiality.
EXCERPT FROM THE CONTRACT WITH CLIENTS
Article 5
Under this Contract, the Tax Advisor provides their services to the board members and other responsible persons of the Client singly and independently in accordance with the Constitution and the laws of the Republic of Croatia.
The Tax Advisor also undertakes to perform the contracted services with the appropriate conscientiousness of their employees, who have received proper training and are qualified for the performance of advisory jobs.
Article 6
The Client shall deliver requests to the Tax Advisor in a timely manner, and make all documents, files, tax and accounting records, reports, contracts etc., which may be necessary for the performance of services from the scope of this Contract available to the Tax Advisor.
Article 7
The Tax Advisor agrees to keep all the requests and rights of the Client confidential in accordance with legal provisions and their own beliefs.
Article 8
The Tax Advisor shall keep confidential all information which the Client has given him or which has been disclosed to them in some other way during the course of work and secure it from unauthorized disclosure to third parties. The confidentiality clause is accordingly governed by the provisions of the General Tax Act.
Information about the acivities of licenced tax advisors
It is common knowledge that business management necessarily involves tax risk management. This is especially evident under the circumstances of a high effective tax burden placed on businesses, such as in Croatia. Business management serves the goal of long-term optimization of security and efficiency by producing certain economic, market and financial effects. Since the financial effects directly increase efficiency through maximization of net cash flows after taxation, a need for identifying tax risks, their significance and methods of managing potential tax effects necessarily arises for the purpose of maximization of net cash flows as a means for achieving the goal.
Tax liabilities are an important segment of total liabilities and financial expenses of a company. Their value and dynamics are determined not just by business activities, but also directly by the regulations, their amendments and their application. Any delay in tax payment (intentional or unintentional) typically creates a risk of a significant decline in performance, either directly through the emergence of additional expenditures (default interest, fines etc.), or also indirectly through the prescribed highest level of priority of their settlement under the conditions of insolvency.
This priority, frequent periods of occurrence of tax liabilities and their level of importance, often turn even short-lived periods of financial instability into more permanent insolvency and stagnation of business. When it comes to taxes, omissions and errors typically result in either direct decline or prevented growth of business success. This additionally justifies investments into organized management of tax risks.
The interest of management in managing tax risks does not arise merely from the wish to preclude the possibility of penalty for violations, it also arises from the wish to pay the minimum possible tax within legal boundaries and to postpone paying taxes for as long as possible.
Organized tax management means systematic and continuous monitoring of operations in the part related to timeliness and accuracy in calculating and paying all forms of tax. In fact, it means to ensure long-term and reliable proper application of tax regulations. Therefore, we recommend permanent business cooperation with the office of licensed tax advisors Javorović Idžojtić and partners.