During the quarantine, the state reduced tax burden, in particular, due to taxes that fill in local budgets. This means that there may be less money left to solve many problems in communities: local budgets will not receive funds from the land tax and real estate rent. And due to the fact that some employers fired employees or employees were on unpaid leave, revenues from the personal income tax, which is an important component of filling local budgets, will be reduced. Therefore, revealing the facts of payments of unaccounted and hidden income to individuals, as well as monitoring the business entities’ compliance with the requirements of current legislation regarding payment of salaries to employees and the personal income tax and single social contribution payment to the budget is one of the priorities for the Tax Service.
In particular, during January-April of 2020, the Main Directorate of the State Tax Service in Rivne region identified 30 cases of violations in terms of applicable tax legislation regarding the payment of salaries (or other income) by enterprises and individuals – entrepreneurs to citizens. According to the audit results, the amount of 908.6 thousand UAH of the PIT was additionally added to the budget; 76.6 thousand UAH of the military levy and 71.0 thousand UAH of the single social contribution. In addition, the audit results revealed the use of labor by 107 employees without proper registration of employment relations.
“We must understand that the reduction of tax revenues during quarantine can lead to negative consequences. Therefore, I appeal to all business representatives – stability and completeness of tax revenues to the community budget increases the revenue side of local budgets and, accordingly, provides the conditions necessary to overcome the pandemic effects in medicine and economic development. So, by paying taxes, you ensure the sustainable socio-economic development of our region” – emphasized acting Head of Main Directorate of the STS in Rivne region Vitalii Chui.