State Tax Service is already actively changing its approach to companies that have suffered from russian attacks. So that tax questions do not become additional problem. This was stated by acting Head of the State Tax Service Lesya Karnaukh, during the meeting with the ACC member companies.
“In conditions of constant enemy attacks, Ukrainian business very often loses in instant everything that has been built over the years. And the state must take real measures to help those who, despite military challenges, do not give up on the path of recovery. This is where we started our conversation with members of the American Chamber of Commerce in Ukraine. According to the ACC, more than 90% of its member companies are fully operational despite the war, and almost half have suffered damage due to russian aggression” – Lesya Karnaukh said.
State Tax Service has developed a big set of measures to simplify work of business that has suffered from russian attacks. This particularly includes clear identification of affected business entities in the State Tax Service’s systems and creation of a separate list; taking into account consequences of shelling for assessing tax risks and minimum of paper bureaucracy. We are changing approach to audits – only if there are specific risks; as well as maximum personal support for business entities that have suffered critical damage.
This is all that the State Tax Service can already do without making changes to legislation. Lesya Karnaukh called on the ACC member companies to provide the State Tax Service with specific, real suggestions where the Tax Service can still save time and effort for business. And the main thing here is that each party works with a clear awareness of its responsibility: without manipulation and with honest payment of taxes to the budget.
“I also asked to share practical information on how consequences of russian attacks are documented today. In particular, how long it takes to inspect damaged property, what data is recorded in the acts, how information is entered into the Register of damaged and destroyed property, and what information is contained in the Chamber of Commerce and Industry’s force majeure certificate” – she stated.
Separate block is the transfer pricing.
Here, the State Tax Service is already working on updating rules that would comply with international OECD and BEPS standards. We have developed a draft law and are consulting on its provisions with business and international experts.
Keep developing APA mechanism for the pre-negotiation of pricing. To avoid possible disputes and double taxation.
Litigation involving the State Tax Service were also touched upon. Already, there is positive dynamics. Their number has decreased by 19% compared to the last year.