Audit units of the State Tax Service provided 3.7 billion UAH to the budget during quarantine conditions

Tax audit units of the State Tax Service of Ukraine conducted 1.4 thousand scheduled and 3.5 thousand unscheduled audits during January – June 2020. It is significantly less than during the corresponding period in 2019. As follows, the number of scheduled audits decreased by 42%, unscheduled – by 46%. Counter-audits were conducted less by 635 or by 38%, actual audits – by 2.9 thousand or 36%.

Reason for reduction in the number of control measures is a moratorium on audits due to the spread of coronavirus disease (COVID-19).

Despite the fact that during the first half of 2020 of which 3.5 months (60% of the time) there were no conducted documentary audits, the decline in key performance indicators is much smaller than this percentage. Particularly, although for 6 months of 2020 comparing to the corresponding period in 2019 audits have decreased by 41% (from 17 thousand to 10 thousand) and surcharges decreased by only 28% (from 20.3 billion UAH to 14.7 billion UAH).

One of the three UAH of agreed accrued amounts was collected to the budget. Total contribution of tax audit units to ensure budget revenues for 6 months of 2020 is 3.7 billion UAH.

Thus, 1.3 billion UAH was received in cash, the negative value of income tax object was reduced by 10.7 billion UAH which prevented non-payment of tax in the future by 1.9 billion UAH; balances of the negative VAT value were reduced which after the budget reimbursement is included in the tax credit of the next period by 520 million UAH.

As of today there is ongoing work to strengthen tax discipline. The auditors’ efforts are focused on additional risk analysis in the taxpayers’ activities, including the study of tax evasion schemes, fees and single social contribution for quality preparation for documentary audits after the moratorium. Actual audits on the production and turnover of excisable products, as well as documentary audits on the VAT refunds continue.