Meeting of representatives of the State Tax Service, American Chamber of Commerce in Ukraine and European Business Association: tax risk management system

"Experimental project: facilitating taxpayers’ compliance with their tax obligations" – was the meeting topic of representatives of the State Tax Service, American Chamber of Commerce in Ukraine and European Business Association.

It was about realization of experimental project regarding functioning of the tax risk management system (compliance risks) in the State Tax Service" according to Resolution of the Cabinet of Ministers of Ukraine № 854 as of 25.07.2024.

According to acting Deputy Head of the State Tax Service Yevhenii Sokur, efforts to reform the State Tax Service are currently focused, among other things, on developing modern practices for managing compliance risks (compliance risks with tax legislation), which is also enshrined in the National Revenue Strategy until 2030.

"Introduction of tax risk management system in the State Tax Service will ensure systematic and unified approach to managing risks of compliance with tax legislation in work of the State Tax Service’s authorities across the entire vertical, focusing efforts of tax authorities on the most risky sectors and taxpayers" – stated Yevhenii Sokur.

Compliance risks in the tax administration system are risks that lead to the revenue loss if taxpayers fail to comply with the four basic obligations defined by tax legislation: proper registration in the tax system; timely submission of tax reporting; provision of complete and accurate information in tax reporting and timely payment of tax liabilities within the established deadlines.

Strategic goal of compliance risk management is to continuously increase level of voluntary compliance with tax law requirements by the taxpayers by identifying and prioritizing risks of tax revenue loss and implementing measures aimed at minimizing risks.