Review article

BLACK CHARTER IN THE REPUBLIC OF CROATIA

Petar Čovo ; University of Zadar
Ante Mrčela ; Split
Hrvoje Baričević ; Faculty of Maritime Studies Rijeka

Abstract

The purpose and aim of this paper is to systemize, describe and analyze the forms, as well as to estimate the share of “black charter” in Croatia, and to formulate guidelines for its decrease and control.
Illegal charter of foreign crafts in our waters, known as “black charter”, accounts for a considerable share of grey economy in Croatia and causes, year by year, a severe damage to the State Budget that is hardly to assess. According to the available data and estimates there are at least ten thousand mainly foreign yachts and boats in our part of the Adriatic Sea every summer that are illegally chartered, and against some estimates due to effective charter of those crafts in high season during three summer months, the Croatian State Budget looses more than Kn 300 million only from non-payment of VAT and profit tax.
A number of methods, including the inductive and deductive ones, statistical and expert methods, have been used in this paper. The methods applied show a comparatively large proportion of “black charter” in Croatia until 2005 when a new Regulation on Arrival and Stay of Foreign Yachts and Boats in Croatian Water was adopted. However, since then it has been considerably decreased.
The main problem is that the charter companies do not charge the charter services to the account of their company established in Croatia, but directly to the account abroad, to off-shore companies’ account. Foreign charter companies abuse the regulations on temporary import and VAT rebate. By charter with charter companies and through a three-month charter of crafts imported in this way, under minimum costs, the beneficiaries of those benefits used to earn between Eur 50,000 and 80,000.
It is by all means necessary to carry out the approximation of Croatian legislation with EU laws and standards, which is not only required by the accession negotiations opened with the EU, but is also essential in order to avoid different interpretations of certain regulations and different procedures taken by customs, tax and maritime authorities against “black charter”.

Keywords

Black charter; Off-shore companies; , Vignette, Effects; Supervision

Hrčak ID:

62888

URI

https://hrcak.srce.hr/62888

Publication date:

30.12.2010.

Article data in other languages: croatian

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