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Based on the reported turnover of catering industry taxpayers in the past periods a very low turnover has been noticed. There arises a question of unrealistically reported income which is incongruent with the income scale of the taxpayers. Accordingly, Ministry of Finance suspects that there is an area of underground economy and therefore suggests the Fiscalization Act in order to try to suppress it. In our paper we will show the stated results of turnover records after the obligation of reporting the records through the fiscal register office and compare them with the stated turnovers before the Fiscalization Act came into effect in the same period. The turnovers will be compared based on the average turnover per employee. We will provide an outline of two groups of taxpayers; small entrepreneurs and craftsmen, and large taxpayers, who have been obliged by the Fiscalization Act since 1st January 2013, and we will establish how much the Fiscalization Act has contributed to the state budget. [ABSTRACT FROM AUTHOR]

Credit rating agencies (CRAs) are of great importance in today's modern financial markets. Primary goal of their business is to secure objective and reliable ratings of debt issuers as well as of different credit instruments that are used by financial services users. In order to deliver appropriate ratings CRAs perform analysis using specific methodology and issue credit opinions on credit worthiness of companies and governments. Beside traditional ratings of corporate and government (sovereign) debt instruments, CRAs issue credit opinions on a wide range of more complex financial debt instruments, including structured finance products. The ratings issued by CRAs have a major impact on actions of every player on the financial markets. Credit opinions are closely followed by investors, borrowers, issuers and governments and observed as the key information in determining investment decisions. The rating of any credit instrument represents an indicator of risk associated with ability of the issuer of the debt instrument to fulfill his contractual obligations, i. e. to repay his debts. Additionally, the cost of raising capital in the market is directly influenced by the rating given to an issuer or credit instrument. The unfavorable ratings are increasing the interest costs, thus making the financing more expensive. CRAs play a vital role in financial markets by reducing the informative asymmetry about the credit worthiness between lenders and investors, on one side, and issuers on the other side, thus increasing market efficiency and lowering transaction costs for both sides. CRAs have started to develop their business model in the early 20th century in the USA. The modern credit rating industry is highly concentrated and oligopolistic with "big three" credit agencies dominated the market and having a combined market share of 95%. A number of regional and local agencies provide specific rating services with very limited impact on the global financial markets. The role of CRAs has expanded wiThthe financial globalization and different regulatory frameworks that assigned CRAs an authoritative position and considerable clout over market participants. Nevertheless, the failed ratings and contribution of CRAs to recent financial and global crisis require revisiting their business model, the role and market position as well as a new and flexible approach to their regulation. Therefore, the aim of the paper is to provide an overview of the development and characteristics of the credit rating industry as well as of recent trends and policy changes in the field of CRAs regulation. [ABSTRACT FROM AUTHOR]

The research aimed at developing models for predicting more efficient usage of financial means and measures provided by the IPARD program for the agriculture and rural area development in the Republic of Croatia. The research involved a total of 507 agricultural family farms. The Chi-square test (χ²) was used for analysis of original data presented in frequencies. The data obtained by questionnaires were analyzed and used for creation of prediction models which referred to examinees' education level and average monthly income, as both determinants were identified as significant factors for more efficient usage of IPARD program funds. There were two prediction models developed by means of deliberate changes of frequencies in contingency tables. By changing of existing frequencies of examinees referring to their average monthly income and education level, the authors created two prediction models which can serve as a starting point for preparation of measures that will facilitate more efficient usage of IPRAD program funds by increasing motivation of potential participants to apply to program calls. [ABSTRACT FROM AUTHOR]

In Croatia there is recognized growing interest and effort gain by authorities to give all areas equal opportunities to gain economic and social resources above all needed for EU accession. Allocation of budget which can ensure expected quick economic growth of eastern parts of Croatia justifies budget deficit. The paper shows necessity to accept a challenge of change the mainstream of financing capital investments because conventional patterns slow down and make difficult to run development projects. There is a great extend of opportunities of financial sources but not used in enough scale. The goal is to answer on questions: what kind of sources of financing are suitable to use in public sector, and is their current way of borrowing fit efficiently enough to be adequate for quick economic development? This paper contributes in attempt to present some solutions to problem of areas legged behind in Eastern Croatia which plead for strengthening development and economic prosperity because nominated projects for public goods exceed their budgets possibilities. Many factors depend about financial productivity of local units. For that purpose the current mainstream of public debts will be considered. The potential of different pattern of public debt will be foreseen and at the same time identify the possibilities which could bring new patters of financing public investments like involvement of private sector in projects of public interest like public-private partnership. [ABSTRACT FROM AUTHOR]