Business audit: its state as of today
Legislative restrictions on audits have led to a significant reduction in their number. 21.9 thousand documentary audits were carried out during 11 months of 2020, as of the corresponding period in 2019 this figure was 36.5 thousand. That is 40% or 14.6 thousand less.
Such audits covered only 0.6% of all registered payers. Of these: large business entities – 14%, medium – 2%, small – 0.5%.
As follows, small and medium-sized business entities were practically not audited. Audits mostly concerned risky operations of large business entities.
14.1 thousand actual audits were carried out which is equal to the last year’s figure. Then their number was 14.8 thousand.
At the same time, given the ban conditions on business audits, the STS receives numerous complaints about legislative violations regarding undocumented labor relations and renting apartments by citizens without paying the appropriate amounts of taxes to the budget.
Central apparatus of the STS received 262 citizens’ appeals in the II half of 2020. Appeals contained information about more than 800 cases of non-registration of employment.
Once again, we appeal to citizens: properly registered employment relationship is a guarantee of improving your well-being, implementing programs of socio-economic development, ensuring social protection of workers and more.
We would also like to inform you that after the expiration of established restrictions, the STS will resume carrying out control and verification measures on citizens’ appeals on the issues of labor relations registration with employers regarding employees.
Information on possible facts of non-registration of labor relations can be reported by calling Contact Center of the STS 0800-501-007 or by e-mail zvernennya_dps@tax.gov.ua.
Responding to the appeal regarding facts of renting out property without paying taxes, the tax authorities explain provisions of the Tax Code of Ukraine on the obligation to declare income from renting apartments and the need to pay personal income tax and military levy to apartment owners. At present, audits of apartment owners for compliance with the tax legislation requirements are currently not conducted in connection with the introduction of audit moratorium.
Reminder! In connection with the quarantine introduction on the territory of Ukraine from 18th of March 2020, a moratorium on the conduction of documentary and factual audits by tax authorities is established by the law, excepting:
unscheduled audits regarding the VAT reimbursement and negative VAT values;
actual audits of operations with excisable goods.
As of the 8th of August 2020, the ban on taxpayers’ audits in connection with termination of activities has been lifted.
Communicate with the State Tax Service remotely using the “InfoTAX” service
