Improving integrity and implementing reforms in the State Tax Service are the main areas of implementation of the Finnish-Ukrainian project

Acting Head of the State Tax Service of Ukraine Lesya Karnaukh and representatives of the Ministry for Foreign Affairs of Finland Emmi Oikari, Mika Vehnämäki, Matti Väänänen and Embassy of Finland in Ukraine Henri Riihimäki Kristian spoke, during the meeting, about increasing transparency and trust in the State Tax Service and bringing internal processes closer to modern European management standards.

As acting Head of the State Tax Service of Ukraine Lesya Karnaukh noted, the Finnish-Ukrainian project “Building trust in the State Tax Service of Ukraine” launched in April is important component of the implementing changes process. 

“Payers’ trust in Tax Administration in Finland reaches 80%. This is a level to which we should strive. And we have already started this path thanks to our Finnish colleagues – specialists from the Finnish Tax Administration VERO” – Lesya Karnaukh said.

According to her, experience of partners from Finland helps to form a modern, transparent and efficient Tax Service that meets the European management standards. Thanks to cooperation with the VERO experts and adaptation of the best international practices to the Ukrainian context, we are able to form basis for the long-term changes that meet strategic goals of the Service. 

Lesya Karnaukh emphasized that areas identified by the project are part of a comprehensive process of transforming the State Tax Service: from implementing approaches to combating money laundering and improving anti-corruption policy to developing project management, strategic planning and system of public surveys.

During the meeting, the main steps of the project implementation were discussed:

integrity improvement: 

within the partnership framework with the VERO, Finnish approaches to combating money laundering and terrorist financing will be adapted. Agreements have been reached on the implementation of relevant mechanisms into regulatory framework and practical activities of the State Tax Service. 

Particular attention is paid to adapting procedure for identifying corruption risks, suggested by the VERO experts, for integration into the internal processes of the State Tax Service;

efficiency of management and implementing reforms improvement:

approaches to project management used in Finland, taking into account specifics of the Ukrainian context were presented.

Also in the near future:

strengthening institutional risk management, in particular regarding levels of coordination, monitoring, follow-up and risk mitigation;

supporting implementation of security function in the State Tax Service, including aspects of cloud security and security audits;

increase trust level in the Service:

emphasis on strategic communications with the taxpayers to increase trust level in the Tax Service, conducting systematic public opinion surveys to measure trust level.

During the meeting, representatives of the Ministry for Foreign Affairs of Finland informed about the Finland’s extensive communication with donor organizations and international organizations, projects. The possibility of holding a coordination meeting of such development partners with assistance of the Ministry for Foreign Affairs of Finland and on the basis of the VERO project was also discussed to present current results of support to the State Tax Service and discuss vector of further movement and necessary assistance in this regard.