Tax risk management system – in a focus of the State Tax Service and Association of Taxpayers of Ukraine

Meeting of representatives of the State Tax Service and Association of Taxpayers of Ukraine was dedicated to one of the key areas of reforming the State Tax Service – implementation of a draft project on functioning of the tax risk management system (compliance risks).

The purpose of this draft project is to introduce international management approaches based on the tax risk management into organization and activities of the State Tax Service, with a view to increasing taxpayers’ compliance with their tax obligations.

This project is a component of implementation of the National Revenue Strategy until 2030 and will be implemented according to Resolution of the Cabinet of Ministers of Ukraine № 854 as of 25.07.2024 during two years.

According to the Tax Code, compliance is a system of measures and procedures carried out by tax authorities to increase level of voluntary fulfillment of tax and other obligations by the taxpayers, according to requirements of tax and other legislation, control over compliance with which is entrusted to the State Tax Service’s authorities, and to reduce probabilities of the tax risks (compliance risk).

Compliance risk management covers the basic / main obligations of the taxpayer, defined by the Tax Code of Ukraine, namely:

registration as the taxpayer;

submission of reporting;

full declaration;

timely payment of payable payments to the budget.

The task is to conduct analysis, identify the greatest risks, find out their cause and direct work of the State Tax Service to achieve maximum effect in conditions of limited labor resources, ensuring equal, fair, and impartial approach to all taxpayers.

Implementation of the draft project will ensure systematization and streamlining of activities of tax authorities in managing compliance risks.