Banner

Published Performance Audit Report „Efficiency of Collection of Tax Claims against the assets of the Taxpayer“

Podgorica, 24th October 2016 – The State audit institution has carried out a performance audit „Efficiency of Collection of Tax Claims against the assets of the Taxpayer“. The audit objective is to assess whether the competent authorities have undertaken necessary actions that should ensure efficient collection of tax claims against the assets of the taxpayer and to assess current institutional and normative framework.

The subject-matter of the audit were the activities carried out by the Ministry of Finance, Tax Administration, Real Estate Administration related to efficient management of the collection of tax claims against the assets of the taxpayer in accordance with the Regulation on the procedure of tax claims collection against the assets of the taxpayer. The subject-matter of the audit includes all decisions, actions and rules for management, accounting and development of the financial and material resources.

The audit covers information and activities of the Ministry of finance and Tax administration, as well as cooperation with other state bodies (Real estate administration and Property administration) with regards to collection of tax claims against the assets of the taxpayer. The phases in the process of collection of tax claims against the assets of the taxpayer are perceived within the time-frame of three years, but the reasons for occurrence of the tax debt of the taxpayers are not analyzed.

In the audit process, the auditing team reviewed documentation at the disposal of the Tax Administration, Ministry of Finance, Property Administration and Real estate administration, referring to the collection of tax claims against the assets of the taxpayer, as well as handling the assets within a period of three years.

Based on conducted audit, the established facts and the statement of the audited entity to the Preliminary Statement of the SAI, the competent Auditing Board comprised of a member of the Senate, Branislav Radulović, PhD, Head of the Auditing Board and a member of Senate, Nikola N. Kovačević, a member of the Auditing Board, has stated that based on the analysis of concluded contracts on partial payment of the tax debt with the assets of the taxpayer and actions of the competent authorities with respect thereto, the measures and activities conducted by the Ministry of finance, Tax administration and Property Administration did not ensure in a sufficient manner achievement of expected results of implementation of the Regulation on the procedure of tax claims collection against the assets of the taxpayer.

The implementation of the Regulation on the procedure of tax claims collection against the assets of the taxpayer:

- did not sufficiently contribute to a more efficient tax collection and reduction of tax debt;

- did not have significant impact on the budget savings in terms of reduction of the expenditures for leasing premises for the needs of state bodies.

- did not in all cases ensure, that taxpayers, who paid their tax debt with the property, settle the tax liabilities duly and reduce the tax debt.

In a number of cases, the state received basements, garages, unfinished business premises and facilities in poor condition.

The performance audit has found that the possible improvements may be realized in all audited areas, and with the aim to improving the same ones, the SAI has given recommendations to the audited entities. The SAI will inform and submit the final performance audit report to the Government and competent Parliamentary Committee of Montenegro.

The final Performance Audit Report „Efficiency of Collection of Tax Claims against the assets of the Taxpayer“ has been published at the official web site of the State audit institution of Montenegro.

Excerpt from the Performance Audit Report „Efficiency of Collection of Tax Liabilities from the Property of the Taxpayer"

Performance Audit Report „Efficiency of Collection of Tax Liabilities from the Property of the Taxpayer" (mne)