How does an individual reflect a real estate object in the one-time (special) voluntary declaration, if such object was built (purchased) both at the expense of funds from which all taxes were paid in full and ...?

How does an individual reflect a real estate object in the one-time (special) voluntary declaration, if such object was built (purchased) both at the expense of funds from which all taxes were paid in full and at the expense of which taxes were not paid or not in full amount?

Sub-paragraph “b” of Paragraph 4 Sub-section 9⁴Section XX “Transitional Provisions” of the Tax Code of Ukraine (hereinafter – TCU) stipulates that objects of the one-time (special) voluntary declaration defined in Sub-paragraph 14.1.280 and 14.1.281 of Paragraph 14.1 Article 14 of the TCU are individual’s assets belonging to declarant on the ownership right (including the joint partial right or common joint ownership right) and are (accounted, in turnover, registered, etc.) on the territory of Ukraine and / or abroad as of the date of submission of the one-time (special) voluntary declaration, particularly the real estate (land, residential and non-residential real estate).

For purposes of Sub-section 9⁴, the real estate also includes objects of unfinished construction, which are:

not taken into operation or the ownership right of which is not registered in manner prescribed by law but property rights to such objects belong to declarant on the ownership right;

not put into operation and located on land plots belonging to declarant on the private property right, including joint ownership, the long-term lease right or superficies;

In addition, Sub-paragraph 6.1 Paragraph 6 Sub-section 9⁴ Section XX “Transitional Provisions” of the TCU stipulates that the one-time (special) voluntary declaration is a declaration which particularly reflects the following information (data):

information on the declaration objects defined in Sub-paragraphs “b” – “f” of Paragraph 4 Sub-section 9⁴ Section XX of the TCU, indicating information that allows them to be identified, specifically their location or storage place (except for art and antiques, precious metals, precious stones, jewelry, bank metals that are not placed on accounts, commemorative banknotes and coins, etc.), type, name, year of production (issuance), etc.;

independently determined by the declarant levy’s calculation base for the one time (special) voluntary declaration in national currency. Declarant is obliged to attach copies of documents confirming value of the declaration objects to the one-time (special) voluntary declaration, in case of individual’s asses location (registration) outside Ukraine and / or in case of declaring currency values placed on bank accounts in Ukraine and monetary claim rights specified in Sub-paragraph “a” Paragraph 4 of Sub-section 9⁴. In case of location (registration) of other individual’s assets in Ukraine, the declarant may attach copies of documents confirming value of the declaration objects;

rate and amount of levy for the one-time (special) voluntary declaration.

In addition, Sub-paragraphs “b” – “f” Paragraph 4 Sub-section 9⁴ Section XX of the TCU stipulate that the levy’s accrual base for specified declaration objects in the one-time (special) voluntary declaration is determined, in particular, but not exclusively, as:

declarant’s expenditures for the purchase (acquisition) of declaration object;

value determined on the basis of property and property rights evaluation, financial instruments and other assets. Evaluation of the declaration object is carried out in compliance with laws of the country where such asset is located. Value of assets, determined in foreign currency, is reflected in the one-time (special) voluntary declaration in UAH at the official exchange rate of national currency set by the National Bank of Ukraine as of the date of submission of one-time (special) voluntary declaration (Sub-paragraph 7.2 Paragraph 7 Sub-section 9⁴ Section XX “Transitional Provisions” of the TCU).

Given the above specified, if an individual owns a real estate object that was acquired (built) both at the expense of funds from which taxes were paid and at the expense of funds from which taxes were not paid – in such case amount of expenditures or the estimated value of such real estate in part of funds from which taxes were not paid is reflected in the one-time (special) voluntary declaration.