References | Europe

Improving Capacity for Better Efficiency and Functionality of the Tax Administration work in Accordance with European Standards


Local Government and Decentralisation, Public Administration Reform, Good Governance and Public Administration, Public Financial Management

Start date

End date

The Overall objective was to assist the Government of Montenegro in order to strengthen the fiscal system in preparation for EU accession. The purpose of the project was to support the Montenegro Tax Administration (MTA) in achieving their legislative implementation, procedural, human resource and information technology goals. In addition the project covered support to the Ministry of Finance with further alignment of Montenegrin Tax Legislation and procedures with the EU acquis. Alongside with legal approximation and policy reform, the principal objective of the project was to contribute to establishing tax compliance through three strategic objectives: taxpayer education, strengthening the audit function and collection of tax liabilities.

Services were delivered under five project components:
Component 1: Support to the harmonisation of legislation, procedures and practices with the EU acquis and international standards

  • Harmonisation of legislation for indirect and direct taxes with the EU acquis
  • Harmonisation of tax procedures and practices with EU acquis and international standards

Component 2: Capacity building of the MTA Collection Department

  • Support to the enhancement of tax collection procedures
  • Development of a computerised tax collection risk assessment system
  • Training of collection department staff
  • Study visit to the Swedish Tax Administration

Component 3: Taxpayer Services

  • Realisation of general tax campaigns and campaigns for targeted groups of taxpayers
  • Provision of advice and technical support for development of tax brochures, pamphlets and tax guides
  • Training of staff in department for providing Taxpayer Services and Taxpayer Registration
  • Development of the website of MTA and the use of electronic forms

Component 4: Information Technology

  • Training of Montenegro Tax Administration staff on EU systems for electronic interchange

Component 5: Control and Inspection

  • Improvement of audit and inspection procedures
  • Implementation of an audit risk management system
  • Training of tax inspectors
  • Development of new IT software for information exchange
  • Development of computerised audit monitoring and reporting tool