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Montenegro

Electronic Tax Returns (ME0061)

Overview

At-a-Glance

Action Plan: Montenegro Action Plan 2018-2020

Action Plan Cycle: 2018

Status: Active

Institutions

Lead Institution: The Ministry of Finance, the Tax Administration, Local self-governments – local revenue collection offices

Support Institution(s): Local self-governments – local revenue offices

Policy Areas

E-Government, Fiscal Openness, Records Management, Sustainable Development Goals, Tax

IRM Review

IRM Report: Montenegro Design Report 2018-2020

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Pending IRM Review

Potential Impact:

Implementation i

Completion: Pending IRM Review

Description

Electronic delivery of Property Tax returns– a pilot project
Commencement and completion dates: January 2019 – august 2020
Responsible institution The Ministry of Finance, the Tax Administration, Local self-governments – local revenue collection offices
Commitment
The issue at stake The calculation, collection and control of property tax collection is perfumed by the local administration authority responsible for local revenue collection. The amount of property tax payable is set by this body until 30 April of the current year. This tax is payable in two equal instalments, one by 30 June, and the other by 31 October of the given year. Local self-government units are obliged to keep records of all taxable property. State administration authority responsible for property is obliged to submit the property ownership data as of 01 January of the current year to the relevant local administration authority by 31 January of the current year. Within 30 days from acquiring the property, property owner is obliged to file a tax report to the relevant local administration authority to calculate the tax amount for the given year. All taxpayers are obliged to settle tax liabilities in line with the law within the timeframe stipulated in their tax returns. The Property Tax Law and the Tax Administration Law fail to provide any further details of the procedure for delivering property tax returns. The property tax return is to be delivered directly, through postal services, which often does not happen in practice. Up to 20% returns do not get delivered at all for various reasons: changed address of the owner, renaming streets, death of the owner, pending probate proceedings and failure to have relevant information on heirs in such instances. At times, however, incomplete and/or incorrect address of the taxpayer as obtained from the Real Estate Administration and the Interior Ministry (residents register) is the reason for failure to deliver.
The Tax Administration features on its webpages the Instruction for Credit Orders for Payment of Property Conveyance Tax, but before they can effectuate payment, citizens need to receive the relevant tax return. http://www.poreskauprava.gov.me/ResourceManager/FileDownload.aspx?rid=269819&rType=2
Commitment Create electronic access to property tax returns database, held by the local revenues collection offices, and the possibility to download the tax return.
How will it help address the issue The starting assumption is that there is a considerable number of taxpayers willing to settle their liabilities in a more straightforward manner with electronic access to the property tax return database, using own ID number (unique citizen identification number (JMBG) for the time being with additional reference to the AOP ), to download their return and execute timely payment. It is estimated that this option would greatly increase revenue collection, together with greater customer satisfaction and avoiding possible enforcement procedures.
Its relevance to OGP values Improved efficiency in accessing public services and better revenue collection
Additional information Compatibility with SDGs Reference to SDG 16: ‘Pease, Justice and Strong Institutions 16.5 – Substantially reduce bribery and corruption in all its forms 16.6 – Develop effective, accountable and transparent institutions at all levels Reference to SDG 17: ‘Partnership for the Goals: 17.1 - Strengthen domestic resource mobilisation, including through international support to developing countries to improve domestic capacity for tax and other revenue collection
The actions to be undertaken within the framework of this commitment will contribute to increasing transparency and accountability of public institutions by introducing electronic access to the database of property tax returns.
BUDGET €20,000
Actions with verifiable results and implementation dates
5.1 Establish e-access to the database of Property Tax Returns for the current year (the Tax Administration) – €20,000 - the new service at the Tax Administration’s portal developed - increase the number of service users by 20% compared to the current number
Points of contact
Responsible person in the implementing entity Goran Petrović, MoF, the Tax Administration
e-mail / phone goran.petrovic@mif.gov.me
Local self-governments – local revenue offices

IRM Midterm Status Summary

5. Electronic delivery of Property Tax returns - a pilot project

 

Language of the commitment as it appears in the action plan:

"Create electronic access to property tax returns database, held by the local revenues collection offices, and the possibility to download the tax return."

Milestones:

5.1 Establish e-access to the database of Property Tax Returns for the current year

Start Date: January 2019                                                               

End Date: December 2019

Context and Objectives

Similar to Commitment 4, this commitment deals with digitizing revenue collection. The government plans to create a database of all property taxes to local revenue collection offices, so each citizen can download their tax return in order to pay taxes.

The commitment includes two milestones that are specific enough to be verified: developing the Tax Administration’s portal and increasing the number of server users by 20%. Individuals will now have electronic access to their own tax information through the portal. However, the commitment will not disclose any additional information, and thus is not directly relevant to OGP values. This commitment could improve tax collection and positively impact national and local budgets. It could also improve the accessibility of personal tax information for citizens. Overall, however, this commitment represents a minor improvement to current tax collection practices.

Next steps

As with the previous commitment, the IRM recommends including this commitment in Montenegro’s Public Finance Management Strategy. The government could add a tool to monitor public authorities to the Tax Administration portal and also share information on budgets and how they are spent.

Commitments

  1. National Identification Document (NID)

    ME0057, 2018, Access to Justice

  2. e-Democracy

    ME0058, 2018, E-Government

  3. Proactive Publication of Information

    ME0059, 2018, Access to Information

  4. Efficient Collection of Administrative Fees

    ME0060, 2018, Access to Justice

  5. Electronic Tax Returns

    ME0061, 2018, E-Government

  6. Improved Anticorruption Policies

    ME0062, 2018, Access to Information

  7. Non-Governmental Participation in the Privatisation Council

    ME0001, 2012, Public Participation

  8. Establishment of Electronic Enterprise Registration

    ME0002, 2012, E-Government

  9. Merging of Inspectorates and Extracting Them from Ministries and Administration Authorities

    ME0003, 2012, Private Sector

  10. Implementation of New Building Permit Legislation

    ME0004, 2012, Private Sector

  11. Establishment of Special Body to Support Investment and Development Projects

    ME0005, 2012, Private Sector

  12. Create e-Register of Licenses

    ME0006, 2012, E-Government

  13. Adopt Regulations for Registry Maintenance

    ME0007, 2012, Legislation & Regulation

  14. Development of an Action Plan with Measures to Improve Regulatory Framework in Montenegro

    ME0008, 2012, Legislation & Regulation

  15. Quarterly Evaluation of Implementation of That Action Plan

    ME0009, 2012, Legislation & Regulation

  16. Train Civil Servants in RIA

    ME0010, 2012, Capacity Building

  17. Apply RIA in Preparation of the Work Programme of the Government

    ME0011, 2012, Legislation & Regulation

  18. ‘Full RIA’ Is Implemented for All Laws

    ME0012, 2012, Legislation & Regulation

  19. Employment of Foreigners Reform

    ME0013, 2012, Citizenship & Immigration

  20. Concessions and Public-Private Partnership: Regulatory Framework

    ME0014, 2012, Legislation & Regulation

  21. Concessions and Public-Private Partnership: Regulation on Procedure

    ME0015, 2012, Legislation & Regulation

  22. Affirm and Advance Existing Functions of the E-Government Portal

    ME0016, 2012, E-Government

  23. e-Government Portal: More Complex Electronic Services Available at the Portal and Acceptance of Electronic Documentation

    ME0017, 2012, E-Government

  24. e-Government Portal: Enable Citizens to Have an Active e-Participation in Creation of Laws and Other Strategic Documents

    ME0018, 2012, E-Government

  25. Established Online Platform for e-Petitions

    ME0019, 2012, E-Government

  26. e-Petitions: Online Platform Is Made Fully Efficient

    ME0020, 2012, E-Government

  27. Southeast Europe Regional Forum

    ME0021, 2012, Capacity Building

  28. Public Consultations

    ME0022, 2012, Public Participation

  29. Direct Contact with Non-Governmental Organisations

    ME0023, 2012, Civic Space

  30. Systems to Improve Direct Contact with Citizens

    ME0024, 2012, Public Participation

  31. Free Access to Information

    ME0025, 2012, Access to Information

  32. Plain Administrative Language

    ME0026, 2012, Capacity Building

  33. Preventing Conflicts of Interest: Raising Public Awareness

    ME0027, 2012, Anti-Corruption

  34. Preventing Conflicts of Interest: Training for Public Officers and Public Campaigns

    ME0028, 2012, Anti-Corruption

  35. Preventing Conflicts of Interest: Political Independency of the Commission for Prevention of the Conflict of Interest

    ME0029, 2012, Anti-Corruption

  36. Strengthening Integrity

    ME0030, 2012, Anti-Corruption

  37. Application of Code of Ethics: Establish an Ethical Board, as an Independent Body

    ME0031, 2012, Anti-Corruption

  38. Application of Code of Ethics: Code of Ethics Training for Civil Servants

    ME0032, 2012, Anti-Corruption

  39. Application of Code of Ethics: Ensure Application of the Code of Ethics Through Operation of Disciplinary Bodies and Periodic Check

    ME0033, 2012, Anti-Corruption

  40. Application of Code of Ethics: Strengthen Tax Administration and Customsadministration Internal Control Mechanisms

    ME0034, 2012, Anti-Corruption

  41. Transparency of Criteria for Employment, Bonuses, and Promotion in the Public Sector

    ME0035, 2012, Anti-Corruption

  42. Reporting on Unpermitted Building Construction

    ME0036, 2012, Infrastructure & Transport

  43. Protection of Persons Reporting Corruption

    ME0037, 2012, Anti-Corruption

  44. Procurement Corruption: Help Desk

    ME0038, 2012, Anti-Corruption

  45. Procurement Corruption: Regulation and Awareness-Raising

    ME0039, 2012, Anti-Corruption

  46. Establishing Central Public Procurement Bodies

    ME0040, 2012, Anti-Corruption

  47. Electronic Public Procurement System

    ME0041, 2012, Anti-Corruption

  48. Budget Transparency: Amend the Organic Law on Budget with Precise Deadlines and Specific Fiscal Rules

    ME0042, 2012, Fiscal Openness

  49. Budget Transparency: Presentation of the Annual Budget and Its Revisions in a Visually Comprehensible and Simple Manner

    ME0043, 2012, Fiscal Openness

  50. Budget Transparency: Identify and Develop Performance Indicators

    ME0044, 2012, Fiscal Openness

  51. Budget Transparency: Amend the Chart of Accounts to Improve the Expenditure Control

    ME0045, 2012, Fiscal Openness

  52. Budget Transparency: Improve Cooperation Between the Internal Audit System and State Audit Institution

    ME0046, 2012, Fiscal Openness

  53. Combatting All Forms of Discrimination: Carry Out Activities Defined in the Signed Memorandum of Cooperation with the NGOs

    ME0047, 2012, Civic Space

  54. Combatting All Forms of Discrimination: Trainings for Police Officers for Professional Conduct with LGBT Persons

    ME0048, 2012, Capacity Building

  55. Combatting All Forms of Discrimination: Trainings for Police Officers Related to Disabled Persons

    ME0049, 2012, Capacity Building

  56. Combatting All Forms of Discrimination: Free-Up Public Traffic Areas Used by Disabled. Define Procedures for Control of Passengers & Vehicles

    ME0050, 2012, Human Rights

  57. Combatting All Forms of Discrimination: Adjust the Security Centre in Accordance with Disabled Persons’ Needs and Appoint a Contact Person

    ME0051, 2012, Human Rights

  58. Improving Media Freedoms

    ME0052, 2012, Civic Space

  59. Corporate Social Responsibility (CSR)

    ME0053, 2012, Private Sector

  60. Support to CSR in Montenegro

    ME0054, 2012, Private Sector

  61. Organisation of Workshops on Corporate Social Responsibility

    ME0055, 2012, Capacity Building

  62. Development of Manual

    ME0056, 2012, Capacity Building

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