Two companies received 183.1 million UAH of penalties for violations in the sphere of excisable goods turnover in Kyiv region

State Tax Service intensifies work on combating violations in the sphere of production and turnover of excisable products. Particularly, Excisable Goods Turnover and Taxation Control Department created at the end of 2019 is already showing significant results in this direction.

Thus, on the 13^th of February employees of the newly created Excisable Goods Turnover and Taxation Control Department of the State Tax Service of Ukraine conducted the audit revealing that two alcohol-producing companies in Kyiv region carried activity without the relevant license for production of ethyl alcohol under the guise of chemical and technical products.

In addition, employees of the STS revealed that there was a number of violations at the specified companies, namely:

- sale of ethyl alcohol without the excise taxpayer’s registration;

- absence (due to the taxpayer’s fault) of registration of excise warehouses in the system of electronic administration of the sale of alcohol by the taxpayer - manager of excise warehouse;

- actual absence of equipment and its registration in the Unified state register of flowmeters.

All this contradicts the requirements stipulated by Articles 212, 229-230 of the Tax Code of Ukraine and the Law of Ukraine №. 481/95-BP “On the state regulation regarding production and turnover of ethyl alcohol, cognac and fruit alcohol, alcohol beverages, tobacco and fuel” as of 19.12.1995 (with amendments).

According to the exposed facts of violations, the tax authorities applied penalties for the total amount of 183.1 million UAH to the specified companies.

“Tax Service continues effective combating violations in production and turnover of alcohol-containing products. Those who are involved in these actions are bound to be held accountable to the Law. And I assure that there will be no exceptions” – stated Chairman of the STS Serhii Verlanov.

STS will continue active audit of companies producing and marketing alcohol-containing products in order to bring their activities into conformity with current legislation of Ukraine.