State Tax Service and Business Ombudsman Council will cooperate on improving tax dispute resolution tools, including mediation

State Tax Service of Ukraine and Business Ombudsman Council have signed an updated Memorandum of partnership and cooperation. Institutions will focus on improving communication tools and effective tax dispute resolution, including mediation. 

Document was signed by acting Head of the State Tax Service Lesya Karnaukh and Business Ombudsman Roman Vashchuk. 

“Effective cooperation between the State Tax Service and the Business Ombudsman Council has been going on for many years. But today, together with Roman Vashchuk, we strive to bring this interaction to the new qualitative level. As we have a common task – to facilitate working conditions of business, especially in the war conditions, but without losses for the budget” – said Lesya Karnaukh. 

She emphasized that partners with the Business Ombudsman Council are already noting a significant reduction in the number of blocked tax invoices and, accordingly, appeals to the courts, as well as a decrease in minor complaints about of the Tax Service’s actions. 

“Now we will focus on improving communication tools and effectively resolving tax disputes. One of the most successful methods is mediation. This progressive tool is widely used in the world. It allows to reduce number of the court complaints, saves time and resources, and most importantly, helps find acceptable solution for each of the parties” – said Lesya Karnaukh.  

State Tax Service and the Business Ombudsman Council will focus on the following: 

- identify categories of disputes that can potentially be resolved by alternative methods;

- develop methods for implementing alternative dispute resolution tools;

- create joint working groups to develop suggestions for their application;

- prepare suggestions and legislative changes for effective implementation of mediation.

They also agreed on the first practical step.

“"We introduce a draft project at the Central Interregional Directorate of the State Tax Service for work with large taxpayers. Alternative dispute resolution tools in the transfer pricing questions will be tested here” – added Lesya Karnaukh. 

Acting Head of the State Tax Service thanked the Business Ombudsman’s team for their willingness to join the comprehensive work.

“The updated Memorandum is not a formality, but a document filled with real substance. Result should be reduction in conflicts and strengthening of trust between the business and authorities” – she emphasized.