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The twinning project "Supporting Tax Administration" has been completed

24/06/2019 - 11:47
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The tax legislation and all aspects of the way in which the Tax Administration in Montenegro functions have been improved, thanks to EU-funded project "Supporting Tax Administration" (IPA 2014). This was concluded during the conference held at the EU Info Centre on the occasion of the completion of the project, which was implemented by the FIIAPP (International and Iberoamerican Foundation for Administration and Public Policy) together with the Tax Administration of Spain and the Tax Administration of Montenegro as project partners.

Project leaders for the Tax Administration of Spain and the Tax Administration of Montenegro, Juan Jose Fernandez Sanchez and Anđelko Jovanović, presented the results through four components, which included the preparation of a set of recommendations for the continous harmonisation of the legal framework with the EU Acquis in the field of tax and excise, the implementation of a training programme for employees in the Tax Administration in the areas of basic business processes, the setting up of the basis for the automatic exchange of information and establishment of the Central Liaison Office, a detailed analysis of the existing IT capacities, and the definition of the infrastructural needs for establishing interoperability and interconnectivity with the EU Tax Administration systems.

The Head of the EU Delegation to Montenegro, Aivo Orav, emphasised that through this project, the tax legislation and all aspects of the ways in which the Tax Administration functions have been improved in accordance with the EU legislation and EU standards. EU Ambassadors expect that this will contribute to a higher degree of compliance with tax regulations and a higher collection of State revenues for the benefit of all citizens of Montenegro.

The Minister of Finance Darko Radunović, in his introductory statement, said that, in addition to strengthening the capacity of the Tax Administration and improving the Montenegrin legal framework in the area of indirect and direct taxation, the project contributed to the implementation of the tax policy in Montenegro. He added that the goal of the tax policy in Montenegro is to create an environment suitable for investment and development of entrepreneurship, primarily through the establishment of a system based on low tax rates. 

 

The Director of the Tax Administration of Montenegro, Miomir M. Mugoša, announced that during the realisation of the project, the key goal of the project was achieved, which is to support Montenegro in fulfilling the requirements foreseen by the Negotiating Chapter 16 - Taxation, the harmonisation of the legal framework, and the strengthening the administrative capacities of the Tax Administration. He concluded that he expected that with the further modernisation of the business processes, and in particular the acquisition of an integrated information system through the project "Tax Administration Reform," the Tax Administration of Montenegro will be fully prepared to join the European Union.

The Economic Adviser of the Spanish Embassy, Javier Alvarez, welcomed the implementation of the project as one of the activities to strengthen the bilateral relations between Spain and Montenegro, and reiterated that they fully support the development of Montenegrin institutions in accordance with EU standards.

The project "Supporting Tax Administration" lasted for 18 months and it is the first twinning project implemented in the Tax Administration of Montenegro worth one million Euros, with the EU contributing €900,000, while the Government of Montenegro co-financed the project with an amount of €100,000.

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