Tax administration reform project is supposed to establish integrated information system as one of key mechanisms of taxpayers control, especially those in grey zone. Activities of the project will require around €14,43 million, it was stated in the Draft Government Program for economic reforms for the period from 2020 to 2022, a document Montenegro develops in the pre-accession phase.
Segment referring to reduction of informal economy, analyzes plan of activities in fiscal areas, aimed at bringing unfair competition down to a minimum. This project is aimed at the improvement of Tax Administration efficiency and reduction of costs for taxpayers.
“The result will be increase in competitiveness of legal entities that operate legally and increase in the efficiency of the work of Tax Administration. Reduction in the level of informal sector can have an impact on the increase in unemployment of those who have been working in the grey zone”, reads the document.
In addition, the program encompasses adoption of new bylaws for the implementation of the Law on Fiscalization in the turnover of goods and services, adopted at the end of July this year, provision of the system for electronic fiscalization, education of the employees in Tax Administration, preparations for the introduction of integrated IT system for revenues management and moving of data to the new system.
In 2021, implementation of e-fiscalization has been planned. This year will also see formation of tax police, as special authority.
Introduction of IMRS is envisaged for 2022, as well as provision of the necessary hardware and further strengthening of the capacities of tax police.
One of the possible risks related to the implementation of the proposed activities if the transition to the new electronic system, as it will require costs for taxpayers with non-adjustable fiscal cash registers.
“There’s a considerable number of fiscal cash registers that can’t support the new system. Some of them can be upgraded but it would incur costs(€130-€150). Majority of taxpayers will have to replace cash registers with new devices”, reads the document.
