DRI examines tax debt collection by seizing assets

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The State Audit Institution (DRI) began an audit of operations of the Ministry of Finance, Tax Administration, Property Administration and Real Estate Administration in order to determine efficiency and acting of the government bodies when it comes to tax debt collection by seizing the debtor’s assets, a member of the DRI Senate Branislav Radulovic told Dnevne Novine newspaper. He added that the audit covered the period from 2013 to this year.

“The audit includes the period from 2013, when the regulation on the procedure of tax debt collection through seizing assets of the taxpayer, to this year and the assets by which companies and municipalities settled their tax liabilities. The audit is aimed at determining the effectiveness of state bodies in this way of tax debt collection and the way the assets that became state property were used”, said Radulovic.

DRI conducted the audit last year for the period until 31 December 2014. Due to the fact that the records of liabilities based on the tax debt run by the Tax Administration was not unique or sufficiently systematic and updated, the state auditor was not able to prove the accuracy of the data on the structure and the total amount of the tax debt.

“DRI presented the official data of the Tax Administration, which recorded debt in the amount of €551,925,069. According to the Tax Administration, the debt of active tax debtors at the end of 2014 accounted for 89% of the total tax debt, whereas the debt of inactive tax debtors fell into the category of non-performing tax debt and it amounted to 11% or €61,850,888 in 2014”, Radulovic said.

According to the Tax Administration, interests amounted to 21% of the total tax debt in 2014 and, as it is the case with the principal debt, they represent non-performing liabilities in inactive business entities.

“According to the Tax Administration, the share of unpaid taxes and contributions on personal income in overall tax debt in the particular year was as much as 61%, whereas the share of VAT debt amounted to 20% and real estate transfer tax to 7%. Other types of taxes, excises, concessions, tax on profits of legal persons and other types of taxes accounted for 12% of the tax debt”, Radulovic said.

Source: Cafe Del Montenegro