Lesya Karnaukh: State Tax Service is actively implementing key reforms of the National Revenue Strategy with support of the IMF experts

State Tax Service continues to implement key reforms and strengthen institutional capacity within framework of the National Revenue Strategy. This was stated by acting Head of the State Tax Service Lesya Karnaukh during a meeting with the IMF Resident Representative in Ukraine Priscilla Toffano and the IMF experts.

The main emphasis is on the risk management system as the basis for high-quality tax administration. 

“In tax administration, we focus on the risk management system – CRM. We are working on the full implementation of this system in work of the State Tax Service by making appropriate changes to legislation. We focus tax attention exclusively on those taxpayers who have high risks, and avoid interfering in activities of honest business” – said Lesya Karnaukh.

According to her, the State Tax Service has developed a number of risk profiles for the main aspects of registration, reporting and payment. Also in the process is identification of risky sectors of economy, indicator for assessing compliance level of improvement and practical implementation of risks.

Acting Head of the State Tax Service noted that the State Tax Service is changing its approaches to conducting audits. According to her, introduced moratorium on audits does not mean that the Tax Service will not apply legislative mechanisms to stop tax evasion schemes and control risky taxpayers.

“In today’s conditions, the State Tax Service must mobilize possible resources to fill the budget. Therefore, we will use all mechanisms permitted by the law to counteract activities of shadow market, create equal competitive conditions for all payers, and protect interests of the state” Lesya Karnaukh emphasized.

Participants also discussed the following questions:

reform in the information technology sphere –  plan for digital development of the State Tax Service until 2030 has already been developed, important emphasis is on data security, integration of tax systems with the European IT systems, and development of high-quality digital services for the taxpayers;

tax audit reforms – digitalization of tax control and implementation of a standard audit file SAF-T UA;

reduction of administrative burden – shortened terms for conducting audits of the VAT tax reporting and reimbursement of declared VAT amounts, expanded capabilities of the Electronic cabinet for non-resident VAT payers, in particular, simplification of tax reporting;

new approaches in the change management system – orientation towards the European standards and experience.

“I thank the IMF experts for their assistance in implementing reforms and implementing measures of the National Revenue Strategy. We are continuing to work, identifying priorities and areas that require increased attention. I am confident that we will continue to demonstrate effectiveness that we already have” Lesya Karnaukh outlined.