Tax risk management system – joint meeting of the State Tax Service, Business Ombudsman Council, Federation of Employers of Ukraine and Union of Ukrainian Entrepreneurs

Press service of the State Tax Service of Ukraine, published 13 December 2024 at 13:13 Chapter: National Revenue Strategy

Representatives of the State Tax Service, Business Ombudsman Council, Federation of Employers of Ukraine and public association "Union of Ukrainian Entrepreneurs" spoke today about implementation of a draft project on functioning of the tax risk management system (compliance risks).

As representatives of the State Tax Service noted, application of the tax compliance is a practice of the European Union in tax sphere. Today, it is one of the important components of reforming tax system of Ukraine within the framework of the National Revenue Strategy.

Project goal 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 compliance level with tax obligations by the taxpayers.

Tax specialists, according to the project, conduct risk analysis, identify the largest of them and find out their cause. Based on the results of such analysis, work of the Service is directed to achieve maximum effect in conditions of limited labor resources and ensure equal, fair and impartial approach to all the taxpayers.

Compliance risks in tax administration are risks that lead to the loss of revenue if the taxpayers do not comply with four basic obligations defined by tax legislation. These are 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.

Participants, during the event, got explanations of the main benefits expected from implementation of the tax risk management system for tax compliance. In particular, this will help the taxpayers avoid the most common errors in the process of filling out reports and paying taxes, simplify reporting and payment process as much as possible, minimize the taxpayers’ risks not to comply with with tax legislation, introduce compliance mechanism from the taxpayer’s state registration to the risk tracking system in the State Tax Service and the final result – payment of taxes and levies to the budget of all levels, etc.