206.9 million UAH of penalties was additionally accrued based on the audit results of calculations during foreign economic transactions

State Tax Service has processed 1 157 notifications from banks about violations by a number of business entities of settlement terms carrying out foreign economic transactions (as of August 1, 2022).

206.9 million UAH of penalties was additionally accrued based on the audit results of calculations during foreign economic transactions.

Tax authorities have resumed unscheduled audits that had been stopped and started new audits of taxpayers, following which information was received regarding the violation of deadlines for receipt of goods for import and/or foreign exchange earnings for export. This is stipulated by the Law of Ukraine № 2260-ХХ as of 12.05.2022 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding the tax administration peculiarities of taxes, levies and single contribution during the marital law and emergency".

This Law gives the State Tax Service and its bodies a right to carry out unscheduled documentary audits of taxpayers, regarding whom tax information was obtained, which indicates a violation of currency legislation in terms of compliance with deadlines for receipt of goods for import and/or foreign exchange earnings from export (Sub-paragraph 69.2 Paragraph 69 Sub-section 10 Section XX "Transitional Provisions" of the Tax Code of Ukraine).

The specified norm entered into force on 27.05.2022.

The main issue of currency supervision in the State Tax Service of Ukraine remains organization and conduction of documentary audits regarding compliance with settlement deadlines for foreign economic transactions, including on the basis of notifications received from the National Bank of Ukraine about violations of settlement deadlines by business entities in the foreign exchange sphere.

Currency regulation system in the new format began to operate in February 2019, after the Law of Ukraine № 2473-VIII as of21.06.2018 "On currency and currency transactions" came into effect and provides for priority of market instruments of currency regulation over the administrative ones. At the same time, restrictions and protective measures are applicable exclusively for a purpose of ensuring stability of financial system and balance of payments of Ukraine and have to be temporary.