Area: Finance
Competent authority: MF, MNZ
EZU URL: .nan
Initiative ID: 116
Initiative accepted and completed: '2013-05-24'
Initiative classified in EZU: .nan
Initiative forwarded in response: '2013-05-10'
Initiative published: '2013-05-10'
Initiative submitted: '2013-04-29'
Response from the competent authority: "Reply from the Ministry of Finance (MoF) and\
  \ AJPES: Regarding the petition for administrative relief of associations received\
  \ on 10 May 2013, concerning the abolition of annual reports for associations that\
  \ have been in existence for less than two months in a given year and have less\
  \ than e.g. \u20AC200 in their account, we would like to reply to you.The obligation\
  \ for an association to prepare an annual report is laid down in the fifth paragraph\
  \ of Article 26 of the Act on the annual report of the Ministry of Finance. The\
  \ annual report for the previous financial year must be submitted by the association\
  \ to AJPES for the purpose of state statistics and public publication by 31 March\
  \ of the current year, and in the case of a change of status or dissolution of the\
  \ association, within two months of the change or dissolution, in accordance with\
  \ Article 29 of ZDru-1, in accordance with Article 29 of ZDru-1. An association\
  \ whose accounts are to be audited by an auditor must submit its annual report to\
  \ AJPES by 31 August of the current year. The law does not allow for exceptions\
  \ in the preparation of the annual reports of associations. The Ministry of the\
  \ Interior is the body responsible for drafting the regulation.AJPES provides the\
  \ database containing the data from the annual reports of associations to the DURS\
  \ for tax purposes on an annual basis, and also makes the data publicly available\
  \ to others through the publication of the annual reports on the web portal. Unlike\
  \ companies, cooperatives and sole traders, the submission of the annual report\
  \ to AJPES for public publication is free of charge for associations. Even if the\
  \ association would not be obliged to draw up annual reports, it would still be\
  \ subject to corporate income tax. This is because all legal persons governed by\
  \ domestic law and having their seat in Slovenia are liable for this tax, including\
  \ all legal persons governed by private law, which includes associations. It becomes\
  \ liable from the date on which it acquires legal personality, i.e. from the date\
  \ of entry in the register of associations, and remains liable until the association\
  \ is removed from the register. During this period, the association must submit\
  \ its tax return(s), of which the accounts form an integral part. If the association\
  \ submits the accounts to AJPES (both for public disclosure and for other needs\
  \ - tax, statistical, etc.), it is not obliged to resubmit the accounts to the VAT\
  \ return, as the tax authority itself obtains the information from AJPES.  However,\
  \ if the association were not obliged to submit annual reports to AJPES, it would\
  \ have to submit the balance sheet data and the income and expenditure account data,\
  \ on the same forms as those submitted to AJPES by other legal persons governed\
  \ by private law, as an integral part of the corporate income tax return to the\
  \ tax authority. The data from the income and expenditure account are the basis\
  \ for the compilation of the corporate income tax return.AJPES collected the annual\
  \ reports of 21,622 associations for 2012. Of these, 115 (0.5% of the total collected)\
  \ were founded in the last two months of 2012 and at the same time had cash resources\
  \ of less than EUR 200.00.Only 4 associations were both founded and dissolved in\
  \ 2012, they were active for between 4 and 11 months (on average 6.4 months); such\
  \ associations are not obliged to submit annual reports to AJPES, but they are obliged\
  \ to submit their final reports to AJPES within two months after dissolution, as\
  \ well as to draw up a tax return within one month after dissolution and to submit\
  \ it to DURS, of which the profit and loss account and the balance sheet are an\
  \ integral part. Even in the case of a shorter operating period than one year, under\
  \ the current regime (Article 29 ZDru-1), the association must submit a final report,\
  \ which also forms an integral part of the tax return (Articles 360 and 357 ZDru-2).\
  \ According to Article 358 of the Tax Procedure Act (ZdavP-2), a legal entity may\
  \ submit a tax return to the Tax Administration of the Republic of Slovenia without\
  \ this information, but must explicitly state this in the tax return. The declaration\
  \ is an integral part of the tax return (Annex 1 of the Regulation on the corporate\
  \ income tax return). In view of the above, the proposed initiative would not have\
  \ a significant impact on the administrative burden on associations and we do not\
  \ support it from a broader societal perspective. The initiative should also be\
  \ assessed from the point of view of its impact on the transparency of business\
  \ operations, as well as its impact on the tax return, of which the profit and loss\
  \ account and the balance sheet are an integral part (some associations also carry\
  \ out profit-making activities, according to the data of the annual reports for\
  \ 2012 there were 7,908 such associations, or 36.6% of the total number of associations\
  \ that submitted annual reports)."
Text file: 116.txt
Title: ' Abolition of annual reports for associations'
URL: https://www.stopbirokraciji.gov.si/pobuda/?st=116
