A fair tax system is essential for a well-functioning society. The arrival of the Covid-19 pandemic has made it painfully obvious just how valuable tax-funded resources, and their correct allocation, are to the proper functioning of our health systems. “The State of Tax Justice 2020”, [1] by Tax Justice Network showed that Montenegro has a total annual tax loss of $107,096,593 (of which $106,190,277 was lost due to corporate tax abuse). This tax loss could have paid the annual salaries of 10,313 nurses, who would have been essential in helping fight the pandemic.
Currently, companies in Montenegro are subject to a 9% corporate tax rate, considered one of the lowest in Europe. This, coupled with the fact that there is high secrecy around corporate taxes and a lack of transparency on company ownership data means that the current system in Montenegro is facilitating fraudulent corporate behavior, tax secrecy and tax loss. This document will address the systemic issues around lack of transparency of corporate tax and beneficial ownership, offering recommendations.
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