The police in Herceg Novi, in collaboration with the Financial Intelligence Unit (FIU), have filed criminal charges against three companies and two individuals responsible for those companies, on suspicion of evading over 2.75 million euros in taxes and contributions, which adversely affects the state budget.

A criminal complaint was submitted to the Basic State Prosecutor’s Office in Herceg Novi against the company “Rus Invest Group,” located in Herceg Novi, and its responsible person, Russian citizen AA (58), on suspicion of engaging in tax and contribution evasion.

“It is alleged that AA committed this offense while acting as the executive director and responsible person of a legal entity by selling multiple real estate properties situated in the municipality of Herceg Novi, owned by the company ‘Rus Invest Group’ doo, to another legal entity for an amount of 24,400,000 euros, as outlined in a property sale agreement dated 12.571.240. AA is suspected of having evaded the obligation to report and pay capital gains tax amounting to 884,660.99 euros, thus unlawfully acquiring material gain in this amount. Furthermore, AA was reported to have earned 97,316.15 euros through an advance payment received in August 2023, for which he failed to pay the necessary output VAT of 16,889.60 euros, resulting in an unlawful material gain totaling 901,550.59 euros, adversely affecting the Budget of Montenegro,” stated the Police Directorate.

Additionally, a criminal complaint was filed against the company “Čehov” doo, also based in Herceg Novi, and its responsible individual, Russian citizen MM (61), on similar charges of tax and contribution evasion.

“MM is suspected of having committed this offense as the executive director of a legal entity by signing a business and technical cooperation agreement with ‘Rus Invest Group’ doo on May 19, 2023, which resulted in the payment of 5,340,000 euros to ‘Čehov’ doo. The latter failed to pay the VAT applicable on this amount, thereby causing damage to Montenegro’s Budget of 925,950.60 euros. Additionally, ‘Čehov’ doo is believed to have entered loan agreements with two individuals totaling 120,000 euros, failing to calculate and remit withholding tax on these payments, causing further damage to the Budget of Montenegro amounting to 21,176.47 euros. Overall, MM unlawfully gained material benefit totaling 947,127.07 euros, adversely affecting the Budget of Montenegro,” the police added.

Criminal charges were also submitted against the company “Ars Trading Company” doo, located in Budva.

“It is suspected that the responsible person in this legal entity—the executive director who passed away prior to the filing of criminal charges—entered into a long-term cooperation agreement with ‘Rus Invest Group’ doo on April 27, 2023. Under this agreement, ‘Rus Invest Group’ doo paid the legal entity the sum of 5,200,000 euros, for which ‘Ars Trading Company’ doo neglected to pay the requisite VAT, thereby gaining unlawful financial advantage of 902,460 euros to the detriment of the Budget of Montenegro,” the statement concluded.

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