STS develops approach to civil investigation of tax violations – Yevhen Oleinikov

Deputy Chairman of the STS Yevhen Oleinikov spoke about a new mechanism for combating tax violations during the scientific-practical conference “Tax Investigations: New challenges for Ukraine and foreign experience”.

Yevhen Oleinikov noted that issues related to counteracting and combating complex tax evasion schemes remain relevant today. In view of this, the Tax investigations department has been created in the STS aimed at activities related to the research of complex tax evasion schemes.

“Such department will become an institutional unit entrusted with authority of complex analytical activities to research the most relevant and dangerous tax evasion models (schemes). At the same time, I will note, it won’t be the body that will carry out criminal investigation of tax violations” – emphasized Yevhen Oleinikov.  

Purpose of the newly created department and the end result is to increase the taxpayers’ tax efficiency and increase level of voluntary tax payments by abandoning schemes for minimization of payments to the budget.

A set of tax investigation actions will be used for this purpose. These are the analysis of business entity’s activity, identification of tax evasion risks, organization and control of risks and support of the tax investigation results.

Such steps will allow to implement an integrity of tax investigation process as an effective tool for increasing the taxpayers’ tax efficiency, increase budget revenues and fulfill the tasks.

Yevhen Oleinikov emphasized that during the department’s creation process attention was focused on the analysis of experience of progressively oriented developed countries. Functioning peculiarities of bodies (structural subdivisions) that carry out analytical activities to identify the tax evasion models in such countries as the United States, Australia, Canada were analyzed.

“STS develops approach to civil investigation of tax violations, supported by appropriate legislation, which will be cost-effective and ensure prompt collection of unpaid taxes” – specified Yevhen Oleinikov. 

Tax investigations department of the STS has already worked out matters totaling 7.3 billion UAH during the first quarter of 2021.

Participants of the conference provided a number of recommendations to the STS regarding functioning of the newly created department, which will effectively organize its work, legislate certain issues and achieve maximum results.

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