Mikhail Titarchuk: STS overcame negative tendency of the tax debt growth in 2020

For the first time, team of the State Tax Service was able to overcome negative tendency that has taken place in recent years regarding the tax debt growth and ensure its reduction by 19.6 billion UAH during 2020. This was reported by Deputy Chairman of the STS Mikhail Titarchuk during presentation of Public report of the STS for 2020.

“At the beginning of 2020, the tax debt amounted to 123 billion 600 million UAH, which is more than budget of the Ministry of Defense, Ministry of Internal Affairs, Ministry of Health. At the beginning of 2021, the tax debt already amounted to 104 billion UAH. This made it possible to additionally attract such necessary funds to the budget during the pandemic” – emphasized Mikhail Titarchuk. 

He also informed that at initiative of the President of Ukraine, the Verkhovna Rada of Ukraine adopted the Law № 1072 on 04.12.2020, application of which allowed payers whose total debt did not exceed 3060 UAH to apply for its write-off. As follows, if 4 million 154 thousand citizens had a tax debt as of 01.01.2020, then as of 01.01.2021 their number decreased to 834.9 thousand.

“Implementation of this norm primarily provided support to almost 3.7 million citizens during the pandemic by simplifying their tax debt by 1.2 billion UAH. It was a team effort and we thank the Ministry of Finance, the Cabinet of Ministers of Ukraine, the Verkhovna Rada and Office of the President of Ukraine for cooperation.” – stated Deputy Chairman of the STS. 

Mikhail Titarchuk noted positive dynamics of the STS in the formation of judicial practice in litigation.

According to the results of 2020, as a result of winning lawsuits, the budget received 6 billion UAH, which is 4.2 times more than in 2019. In favor of the STS, courts of various instances have adopted 1163 final decisions on the taxpayers’ appeals against tax accruals, which are actually 1.5 times more than in 2019 for 6.3 billion UAH, which is 4.4 times more than in 2019.

STS considered 21399 tax notifications – decisions totaling 58 billion 175 million UAH in 2020. Of these, 74% remained unchanged. This is 15 thousand 907 tax notifications – decisions for the total amount of 48 754 million UAH.

At the same time, according to Mikhail Titarchuk, in 2020 there were fewer complaints than in 2019 and the level of cancellation of appeals against decisions of regulatory authorities increased by 6%.

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