The Chairman of the Board of Directors of Bemax Company Veselin Kovačević announced today that the statement of the Deputy Prime Minister for the Political System, Judiciary and Anti-Corruption, Momo Koprivica, is not a legal document, but a political pamphlet without any legal or economic basis.
"It is dominated by manipulation of facts, incorrect legal interpretations and selective use of arguments in an attempt to discredit me and the Bemax company," Kovačević pointed out in his reaction.
He reacted to today's statement from Koprivica, which states, among other things, that "the owner of Bemax is helpless" and that he is "switching to cheap political manipulations."
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"But let's not deal with his political motives due to the local elections in Nikšić, where the Democrats are doing disastrously for him, but with the facts and legal standards that apply in Montenegro, the European Union and wider international practice," said Kovačević.
1. Legal certainty and the prohibition of retroactivity in European law
Kovačević said that Koprivica claims that the tax law can be applied retroactively, but that in doing so he ignores the fundamental principles of legal certainty that are an integral part of the European Convention on Human Rights (ECHR) and the legal practice of the European Court of Human Rights (ECtHR).
"Article 7 The European Convention on Human Rights clearly prohibits the retroactive application of regulations: 'No one shall be held guilty of any criminal offence on account of any act or omission which did not constitute a criminal offence under domestic or international law at the time when it was committed.' Also, the European Court of Human Rights in the case 'Scoppola v. Italy' (2012) emphasizes that all legal regulations, including tax regulations, must be applied in a manner that ensures legal certainty," Kovačević stated.
He added that "Koprivica's attempt to apply the law retroactively to change the results of a past transaction is directly contrary to these principles."
"Furthermore, Article 16 of the Charter of Fundamental Rights of the European Union guarantees the freedom to conduct a business, which includes the right of an individual to freely dispose of his property without politically motivated restrictions. If Koprivica claims that 'public interest' is a sufficient reason for the retroactive application of the law, will that principle now apply to all tax transactions in the last five years? If the answer is 'no', then it is clear that his statement is a politically motivated attack on me, not a principled fight for justice," Kovačević said.
2. European tax standards and the market value of transactions
Kovačević said that Koprivica claims that the selling price of the stake in Bemax was "false" and that it should have been higher.
"But in no tax jurisdiction of the European Union is there a law that automatically imposes 'book value' or 'assessed value' as the basis for the sale price of a company. Tax administrations in the EU use the 'arm's length transaction' principle (market principle), which is based on the fact that the sale price is formed based on the free will of the contracting parties, and not by imposing external factors or arbitrating politicians," said Kovačević.
He asked Koprivica - is there an official international or domestic expertise that determined that the company should have been sold for more?
"If not, why is he abusing public resources for political purposes? If Koprivica's principles were applied, then every transaction in Montenegro could be subsequently disputed just because some politician doesn't like the amount that was agreed," said Kovačević.
3. The state cannot be a merchant - an arbitrator in private affairs
Kovačević said that the state does not have the right to determine at what price someone can sell or buy their business.
"According to the principle of the free market (Article 119 of the Treaty on the Functioning of the EU), the price of any property, including shares in companies, is formed based on market circumstances, not arbitrary political assessments. If Koprivica believes that the state should determine sales prices, then this means that: The state can order citizens at what price they are allowed to sell their real estate, cars or shares. Then, you can retroactively tax or annul all private transactions in Montenegro that were concluded below some 'assessed value'. This is not a state of law, this is a planned economy that does not exist even in the most rigid bureaucracies of Europe," Kovačević stated.
He asks the question - is this what Democratic Montenegro stands for?
4. Politically motivated campaign
According to Kovačević, it is clear even to laypeople that this has nothing to do with law, but with politics.
"Koprivica's selective audit of tax cases shows that she is not motivated by justice, but by the need to score political points through this case. Especially since the Democrats in Nikšić have long been in a single-digit rating, not much above the threshold. If Koprivica wants to fight corruption and tax fraud, will he analyze all private transactions from the previous five years? Of course not. His attempt to criminalize a legal business transaction just because it is politically convenient for him cannot stand up to serious legal arguments," Kovačević pointed out.
5. Respect for the law, not politics
Kovačević said that a true state is not built by selectively persecuting those who do not agree with you politically, but by consistent and impartial application of the law.
"European legal practice does not recognize the model of retroactive justice and political revanchism. Koprivica may try to make the public believe in his political theories, but when all legal arguments are put on the table, he remains just another politician trying to put pressure on the legal and tax system for the sake of personal and party goals. But he must know one thing - in a state governed by the rule of law, truth and the law are stronger than his political ambitions," Kovačević said in his reaction.
Koprivica's office announced yesterday that, following a report by Koprivica, the Tax Administration had found irregularities in Bemax.
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Yesterday, in response to that statement, Kovačević also said that it was Koprivica's cheap political marketing, and that these were false accusations against Bemax on the eve of the elections.
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