Digital tax system gets stuck in practice

Instead of improving work and simplifying tax procedures, the Integrated Revenue Management System (IRMS) has, in practice, significantly made performing everyday tasks more difficult.

This, among other things, is what some accountants in Montenegro say in a petition and open letter published on the online platform Change.org and addressed to the Ministry of Finance and the Tax Administration.

In the text, they point out some problems in practice, among other things, they claim that the Police Administration does not accept electronically signed documents issued by the Tax Administration, and that they cannot be held responsible if, due to problems in the operation of the IRMS, they are late in submitting certain requests.

The competent department, which leads Novica Vuković, and Tax, they also sent several requests, among other things, to urgently correct errors and ensure full functionality of the digital platform and to enable the submission of documentation in paper form until the system is fully stabilized, and to suspend the application of all deadlines and sanctions that depend on the functioning of the IRMS.

The Tax Administration told "Vijesti" yesterday that they are aware that the introduction of this system is a complex process, that they monitor its functioning on a daily basis, record user reports, eliminate observed irregularities and improve user support.

"At the same time, a significant number of service requests are already processed electronically without major difficulties, while documents issued by the Tax Administration are signed and submitted electronically," they claim.

IRMS began operating on January 12th and, as announced, was supposed to improve the efficiency of tax administration and enable faster and simpler electronic procedures. Already with the launch of the system, the first complaints regarding company registration were received. According to unofficial information from the editorial staff, there were such challenges during May...

The Tax Office told "Vijesti" that since the beginning of the implementation of the new IRMS system, they have had constant communication with taxpayers, accountants and the business community, and that representatives of the informal association of accountants, if they exist, and if they want to present specific comments, problems and suggestions, they can contact them.

"And they will be allowed to meet. It is important for the institution that communication is based on specific cases, verifiable facts and clearly identified problems, without generalizations that do not contribute to their solution in practice," they told "Vijesti".

In an address on the Change.org platform and a petition created earlier this week, the authors, signed as Accountants of Montenegro, state that they cannot accept responsibility for any consequences that may arise from the inability to submit requests in a timely manner due to technical problems with the system. They add that it is unacceptable to impose responsibility on accounting agencies, their employees and end users for the assigned “Inactive” status or to bear any other consequences due to problems for which they are not responsible and over which they cannot influence.

The Tax Office said in this regard that they "will act extremely carefully and responsibly."

"With full respect for individual cases in which delays occurred due to objective technical circumstances or problems that the taxpayer, or his accountant, could not influence. Such cases will be considered individually, based on the facts and available evidence," they told "Vijesti".

The Tax Office added that "it should be equally clear that when it comes to respecting the law and fulfilling tax obligations, there is no room for any concessions that would call into question the equal treatment of taxpayers, legal certainty and stability of the tax system."

Upon the accountants' request to enable the submission of documentation in paper form until the system is fully stabilized and to suspend the application of all deadlines and sanctions that depend on the functioning of the IRMS system, the Tax Office said that they cannot "suspend legal provisions in a lump sum."

"Nor introduce parallel procedures in a way that would jeopardize legal certainty, reform processes and the functioning of the system. Where there is a justified and documented problem, the institution will act reasonably and in accordance with the law. The goal is not repression, but the orderly functioning of the system and the protection of all taxpayers who fulfill their obligations on time," they stated in their response.

Accountants of Montenegro also stated in an open letter that documents issued by the Tax Administration, such as extracts from the CRPS, which are electronically signed, are not accepted as valid by the Police Administration.

"When it comes to electronically signed documents, the Tax Administration stands behind the legal validity of the documents it issues in accordance with applicable regulations. This is an area that was legally regulated almost ten years ago. However, we are aware that in practice there are individual cases in which certain institutions do not accept electronically signed documents. Although it has no legal obligation to do so, the Tax Administration meets the needs of the economy in such cases by certifying paper documents, which additionally engages already limited human resources," the Tax Administration states.

As they added, the Police Agency is in direct communication with the competent institutions, in order to establish direct data exchange, in order to, they say, minimize the need for issuing such certificates and confirmations as soon as possible, or to abolish them where technical and legal conditions exist.

"In the coming period, the Tax Administration will continue to improve the IRMS system, strengthen user support and maintain regular communication with the economy and the accounting profession. A stable, functional and electronically based tax system is a common interest of the state, economy and citizens, and the Tax Administration remains open to any constructive dialogue that contributes to this goal," they stated in their response.

IRMS was presented at the end of last year as "one of the most significant projects in the field of finance."

"And it lays the foundation for further modernization, a stronger fight against the informal economy, and for building a tax administration that is a true service to citizens and the economy, but also a reliable guardian of the fiscal stability of the state," the Ministry of Finance and the Tax Administration announced at the time.

The petition signed by the Accountants of Montenegro had more than 560 signatures by early yesterday afternoon.