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Is a vehicle that was purchased for funds from which taxes and levies have not been paid considered as object of the one-time (special) voluntary declaration, if it is later stolen but the ownership remains with an individual?

, published 11 November 2021 at 18:39

Paragraph 1 Sub-section 94 Section XX “Transitional Provisions” of  the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – TCU) stipulates that the one-time (special) voluntary declaration is a special procedure for voluntary individual’s declaration (Paragraph 3 of this Sub-section) of assets located on the territory of Ukraine and / or abroad, if such individual’s assets were received (acquired) at the expense of income that was subject to taxation in Ukraine at the time of their accrual (receipt) and from which taxes and levies were not paid or not in full amount according to requirements of tax legislation and / or international agreements, consent to the binding nature of which is provided by the Verkhovna Rada of Ukraine, and / or which were not declared in violation of tax and currency legislation, control of which is entrusted to the supervisory authorities during any of the tax periods that took place before 01.01.2021.

Sub-paragraph “c” Sub-section 94 Section XX of the TCU and Sub-paragraphs 14.1.280, 14.1.281 Paragraph 14.1 Article 14 of the TCU stipulate that objects of the one-time (special) voluntary declaration may be individual’s assets owned by the declarant (including joint partial or joint common ownership right) and are (registered, in circulation, registered, etc.) on the territory of Ukraine and / or abroad as of the date of submission of one-time (special) voluntary declaration, specifically movable property, including vehicles and other self-propelled machines and mechanisms.

Herewith, Paragraph 10 Sub-section 94 Section XX “Transitional Provisions” of the TCU stipulates that the composition and volume of assets, sources of purchase (acquisition) of which in case of individual’s non-use of right to submit the one-time (special) voluntary declaration are considered to be those from which taxes and levies are fully paid according to tax legislation, particularly:

one vehicle for personal non-commercial use (except for a vehicle intended for carriage of 10 or more people, including the driver, a vehicle with engine capacity of at least 3 thousand cubic cm and / or with average market cost of more than 400 thousand UAH, a motorcycle with engine capacity of more than 800 cubic meters. see, aircraft, helicopter, yacht, boat), ownership of which was registered according to Ukrainian legislation as of the date of completion of a period of one-time (special) voluntary declaration (Sub-paragraph 3 Paragraph 10 Sub-section 94 Section XX “Transitional Provisions” of the TCU).

As follows, provisions of Paragraph 10 Sub-section 94 Section XX “Transitional Provisions” of the TCU are applied in case of the individual’s non-use of a right to submit the one-time (special) voluntary declaration.

Given the above specified, in the case of an individual’s right to submit the one-time (special) voluntary declaration, the declaration object may be a vehicle purchased for funds from which taxes and levies have not been paid, if it is later stolen and the ownership remains with individual.