Podgorica, (MINA-BUSINESS) – According to a report by the State Audit Institution (DRI), Montenegro is losing a lot of money in public revenues because of untimely launched bankruptcy proceedings, insufficient bankrupts’ estate, and inefficiency of the collection measures prior to the proceedings.
“The report indicates that the bankruptcy system is susceptible to abuse and fraud in terms of the launching of bankruptcy proceedings, as the protection and integrity of the bankruptcy system depend on the identification of bankruptcy fraud and abuse and on adequate actions, which are absent,” the DRI says.
The DRI has published the success audit “Efficiency of the Tax Debt Collection from the Taxpayers Undergoing Bankruptcy and Liquidation Proceedings,” the purpose of which is to formulate the documented proposals and recommendations for improvement of situation in that field.
According to the DRI, implementation of the proposals and recommendations would result in an increase in tax debt collection and fulfilment of the defined bankruptcy goals, while contributing to the strengthening of responsibility and transparency.
The DRI explained that the documentation related to the launching of bankruptcy and liquidation proceedings had been examined in the audit process.
The report covers a period between 2015 and 2017 and is based on a sample of selected cases of the Commercial Court in Podgorica.
The report says that, according to the Tax Administration, the total tax debt amounted to €444.66 million at the end of the last year.
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