State Tax Service of Ukraine continues its strategic partnership with the UK HMRC. Updated Memorandum of understanding between the tax authorities of Ukraine and the UK has been signed.

Document identifies specific measures for the next three years. It particularly outlines key cooperation areas and joint measures aimed at strengthening institutional capacity of tax administrations.

Lesya Karnaukh, acting Head of the State Tax Service, exchanged signed copies of the Memorandum with Lizzie Arnold, Director of Business, Assets and International Cooperation at the HMRC.

According to Lesya Karnaukh, the Memorandum is a confirmation of shared commitment to continue cooperation, learn from each other and build stronger tax administrations for the future. And this is extremely important, given previously signed 100-year partnership Agreement between the Ukraine and the United Kingdom.

“We have been developing effective cooperation with our British colleagues for several years. I am grateful to our partners, who in difficult times help not only in the fight against the russian aggressor, but also in transformational processes. With support of our partners from the HMRC, we are already actively implementing modern approaches to tax administration, developing analytics, services, etc.” – emphasized acting Head of the State Tax Service.

The updated Memorandum provides for the following priorities:

- increasing taxpayers' trust in the Tax Service;

- reducing the tax gap;

- regulating and taxing crypto-assets;

- strengthening counteraction against tax evasion schemes;

- automatic exchange of tax information;

- developing internal communications.

As acting Head of the State Tax Service noted, the HMRC’s experience in implementing risk-based approach, developing digital services, applying behavioral approaches to increase compliance, as well as in the international taxation questions is also important. Cooperation in these areas contributes to implementation of the National Revenue Strategy until 2030 and strengthening institutional capacity of the State Tax Service.

During the meeting with colleagues, Lesya Karnaukh shared experience of the State Tax Service in ensuring continuity of the Tax Service, stable budget replenishment and provision of services to the taxpayers in conditions of the full-scale war. Ukraine continues to simultaneously maintain financial stability of the state and implement the large-scale tax administration reforms.