Yevhen Oleinikov: the SMCOR is a source of powerful analytical information

Press service of the State Tax Service of Ukraine, published 14 July 2020 at 19:23 Chapter: News

Today during a briefing, the Deputy Chairman of the State Tax Service Yevhen Oleinikov spoke about schemes used by the fraudsters to form a fictitious tax credit and tax evasion, as well as what role in blocking such operations plays a system of monitoring tax risks during the registration of tax invoices.

All tax invoices which taxpayers register in the system pass technical verification and checkout for compliance with the risk criteria. These are the criteria of unconditional registration, the taxpayer’s riskiness, positive tax history and riskiness of operation. If the tax invoice falls under the risk criteria, its registration is suspended and the taxpayer must document the reality of such operation.

Yevhen Oleinikov stated that 9.1 billion UAH is a result of using the SMCOR for the last two months. These funds were collected by eliminating a technical error in the system which could be used by the fraudsters. “The SMCOR is a prevention of financial risks but in fact any monitoring system can completely exclude the tax evasion” – said Yevhen Oleinikov.

According to him, 70– 80% of the taxpayers are quite honest and are willing to pay taxes. However, the business cannot be required to be honest at the bankruptcy cost. According to Yevhen Oleinikov, this contradicts the principles of business existence.

Algorithms and analytical work will be improved because the SMCOR is a source of powerful analytical information.

“If the business sees loses in profitability to another business that uses the tax evasion schemes and thereby increases its profitability, such business will also start using these schemes. Just to stay on equal competitive conditions. As follows, responsibility of the state is to stop such schemes, to destroy them, not to allow them to be created and even more not to allow existence of those criminal groups that have made the creation of such schemes. – emphasized Deputy Chairman of the STS. – Funds accumulated by the criminal groups pose not only losses to the state budget but also a threat to national security.”