State Tax Service of Ukraine has prepared a set of tax measures to help affected business. This was informed by acting Head of the State Tax Service of Ukraine Lesya Karnaukh during the meeting with more than 60 representatives of business associations and civil society institutions.

“Destroyed equipment, warehouses, products, documents, stopped production. Unfortunately, this is a familiar picture after every russian shelling. How to help business in this situation, fill the state budget and fulfill international obligations is one of the top questions that authorities are working on today. A number of measures that should help business require legislative regulation. But we at the State Tax Service have already prepared a set of measures as of today, in order not to waste time, to simplify lives of those who suffered. This is a balanced and risk-oriented approach to administration and tax control over business that has suffered losses due to the war” – she said.

Key points:

- clear identification of affected business

Separate list of business entities that have documented damage will be generated in the State Tax Service’s systems. There will also be a corresponding mark “business entity that has suffered as a result of the armed aggression of russian federation”.

List will be created taking into account data from the State Emergency Service, military administrations, local authorities, law enforcement agencies and state registers. So that business entities do not have to submit any certificates again.

- taking into account consequences of attacks for assessing tax risks

Reduction of turnover, profitability, tax burden, etc. should not automatically entail a request from the tax or audit. First, we establish all the reasons, whether there is damage after shelling and only then we assess whether there are real tax risks.

- tax control – only where there are real risks

No unreasonable demands on the affected business. At the same time, status of affected enterprise does not mean complete exemption from tax control. If audit is necessary, its subject and scope should be as focused as possible on the specific risk.

- no paper bureaucracy                                                                             

 The main interaction channel with affected taxpayers is the Electronic cabinet. No repeated requests for submission of documents that are already in the information systems of the State Tax Service or can be obtained through the interdepartmental exchange. Maximum assistance to business entities that have suffered from russian aggression and lost their primary documents.

- tax debt

If tax debt has arisen, the State Tax Service must immediately notify affected business. In addition, if the payer has tax debt, this does not mean that the payer automatically loses victim’s status. At the same time, legal procedures for debt repayment do not disappear.

- personal support

Where the damage is critical, we plan to identify responsible person who will help the taxpayer as much as possible. We are maximally involving the Tax Consultant Offices to help affected business.

“We are doing everything we can to ensure that those who have suffered from russian attacks receive not formal, but targeted assistance in administration. During the meeting, we also discussed a number of other important questions with business: system for monitoring risk assessment criteria, audits and appeals, business fragmentation, VAT refunds, currency control, etc.” – she added.