Parliament tax committee chief elaborates on indirect methods of tax control in Ukraine
Ukraine’s Cabinet of Ministers is drafting a bill on indirect methods of tax control, which may be submitted to parliament this year and come into force after the tax amnesty ends, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy Danylo Hetmantsev told the Radio NV radio station on Jan. 11.
This tax
amnesty was launched on Sept. 1 of the previous year, allowing citizens to
voluntarily declare previously undeclared assets and pay a one-time fee. The
amnesty will last until Sept. 1, 2022.
To date, 1.2
billion UAH ($43.8 million) has already been declared under the tax amnesty,
which came into force on Sept. 1, 2021.
Hetmantsev
stressed that over UAH 100 million ($3.6 million) had been amnestied over the
New Year holidays.
“Thus, the
dynamics are growing, and more and more citizens are taking part in the tax
amnesty,” he said.
“Since our
fellow citizens understand that the modern financial world is very transparent
and this is a world in which, whether you want or not, must explain the origin
of your funds.”
He added that
indirect methods of tax control “are not about auditing the income that people
have already received.”
“If someone
bought an apartment or house with funds received from tax evasion, no one can
take away this apartment or house or charge any additional tax on the value of
this asset. Neither the fiscal service nor anyone else is authorized to do
that. Therefore, it can only refer to future valuable acquisitions entered into
the registries, such as apartments, cars, shares, securities, etc.,"
Hetmantsev said.
Ukrainian
Finance Minister Serhiy Marchenko stated that the authorities would use “indirect
methods of determining income” after the tax amnesty expires.
“If you don’t put information into the declaration, you may face questions: where exactly you got this status,” he said, adding that citizens who could not explain the origin of their assets would face “other forms of tax assessment.”
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