Specialists of the State Tax Service told how the payer, who became a victim of fraud during foreign economic activity, should act

We draw attention of the foreign economic activity entities to a common fraudulent mechanism: company concludes contract with a non-resident, transfers payment for products, but funds do not go to the supplier, but to third parties due to interference in the electronic correspondence.

In such cases, specialists of the State Tax Service recommend:

1. Contact the law enforcement immediately.

Open criminal proceeding is the first step to document fraudulent actions.

2. Contact the court or arbitration regarding forced collection of debt from the non-resident.

This will allow stopping deadlines for settlements in the foreign economic activity and accrual of penalties according to the Law № 2473 (Part 7 Article 13).

3. Check whether it is possible to obtain a force majeure certificate from the Ukrainian Chamber of Commerce and Industry or authorized body in the non-resident’s country.

It must contain a causal link with the impossibility of fulfilling obligations. This will allow suspension of settlement terms according to the Law № 2473 (Part 6 Article 13).

4. Inform the tax authority about the situation.

Send explanation to the tax authority at the registration place, providing copies of applications, correspondence and resolution on the initiation of criminal proceedings, force majeure certificate, documents on the acceptance for consideration by the court, international commercial arbitration of the resident’s claim for debt collection from the non-resident. 

5. Record everything through the Electronic cabinet.

If you submit your reports electronically, there are grounds for conducting audit without separate paper applications.

Important: penalty for violation of settlement deadlines in the foreign economic activity transactions is charged only in case where there is no evidence of the force majeure or claim for debt collection has not been filed. Decision is made based on the documentary audit results.

Advise: act quickly, record documents, communicate with the State Tax Service’s units - this will help avoid financial consequences and prove the payer’s good faith.