12 people arrested: Did they damage the state by more than 500.000 euros through tax evasion?

The Montenegrin police arrested 12 people, and filed criminal charges against a total of 25 natural and legal persons, due to the suspicion that they have damaged the state by more than half a million euros through tax evasion.

"Officials of the Police Directorate of the MUP - Criminal Police Sector - Special Police Department carried out the police action "Zeta" and filed a criminal complaint against 13 individuals and 12 legal entities, due to the existence of a well-founded suspicion that they committed the criminal acts of creating a criminal organization, tax evasion and contributions and causing a false bankruptcy by means of assistance", announced the Police Administration.

The police searched apartments and other premises in 16 locations in Podgorica, Cetinje and Budva, and on the order of the Special State Prosecutor, 12 people were arrested, while another person is being sought.

"DK from Podgorica is suspected to have organized a criminal group in the territory of Montenegro in the period from October 2016 to today in the way that he founded two companies in his own name, as well as those related to JK, Đ.K. and JK. three companies, through which he exclusively engaged in fictitious business. Through the aforementioned companies, DK, it is suspected, a larger number of companies from the territory of Montenegro, whose owners are PR, MG, FL, MP, GM, VA, NA and Z.Č, made it possible to extract the profits obtained from the operations of the company, which were returned to the owners of the company in cash, thereby causing damage to the state budget for the amount of evaded tax based on fictitiously presented business relationships and fictitiously presented expenses in the total amount of over 500.000 euros," the police statement reads.

It is suspected that the aforementioned persons committed the criminal acts they are charged with by DK drawing up fictitious invoices with a pre-agreed amount of money to the companies that received that invoice, after which those legal entities would immediately make payments with the agreed amount from the invoice to giro accounts of some of the five companies managed by DK

After the payment, it is suspected that DK withdrew money from the giro account of his companies, usually for material expenses, and returned the money to the payer, while keeping a certain commission for himself.

In this way, the companies that made the payments fictitiously increased the input VAT, which, as is suspected, reduced their tax obligations to the Budget of Montenegro by the amount of VAT and profit tax for each invoice of this type of business.

"After a certain period of this way of doing business, DK through SM, it is suspected, initiated and ended bankruptcy proceedings in companies that were blocked by the Tax Administration due to tax debt," the police announced.

Officers of the Special Police Department, as the police point out, are intensively taking further measures and actions to identify other members of this criminal organization.