Amendments to the Tax Code of Ukraine (Administration of taxes) ~ U-Tax Blog

Friday, July 29, 2011

Amendments to the Tax Code of Ukraine (Administration of taxes)

In the post dated 22 July 2011 I mentioned the draft law No 8217 (enacted by the Parliament of Ukraine but not signed by the President yet) considerably amending the Tax Code of Ukraine. Here, you can find the information on the chief novelties introduced by the aforesaid draft law in respect of the administration of taxes:

- Improvement in the regulation of tax consultations given by the tax authorities: (i) individual tax consultation must be awarded within 30 calendar days; (b) the possibility to obtain tax consultation in an electronic form; (с) the revival of general tax clarifications (consultations) as a basis for the release of a taxpayer from the responsibility for the breach of tax laws;

- Broadening the grounds on which the information from taxpayers can be required by the tax authorities based on a written request. The draft law lays down the following additional grounds: (a) unreliability of data constrained in tax returns; (b) the receipt by the tax authorities of a complaint against a taxpayer pertaining to its incompliance with VAT invoicing rules; (с) the conduction of cross tax audit;

- Clarifying the grounds on which a taxpayer can bar the tax authorities from exercising its documentary tax audit. According to the draft law, a taxpayer is not only entitled to disallow the tax authorities to proceed with the field documentary tax audit if the tax authorities fail to deliver to such a taxpayer an assignment to carry out the tax audit, but also if they fail to deliver to the taxpayer an order on the appointment of the tax audit and identity cards of the tax officials specified in the said assignment.

- Making clear that in the course of their tax audits big taxpayers  are obliged to submit  in an  electronic form to the tax authorities not all available to them source documents, company accounts, and financial reporting documents,  but only those originally executed in an electronic form;

- Eliminating the tax fines for the overstatement of the negative balance of corporate profit tax and removing the special 75 per cent tax fine for three or more violations of tax laws committed within 1095 days.

As you can see, most of the novelties brought by the draft law No 8217, of course, except for those relating to widening the grounds to demand information from taxpayers, seems to be beneficial for business.

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