SUP took part in a meeting of business with authorities on amendments to the Law No. 466

On May 28 a meeting of business with the authorities on amendments to the Law No. 466 (draft No. 1210) took place.
The meeting was attended by representatives of business associations, the Deputy Head of the Office of the President Yuliia Kovaliv, the Chairman of the Executive Committee of the National Reform Council under the President of Ukraine Mikheil Saakashvili, the Chairman of the Committee on Finance, Tax and Customs Policy of the Verkhovna Rada of Ukraine Danylo Hetmantsev, representatives of the Ministry of Finance of Ukraine and State Tax Service of Ukraine.
The Union has repeatedly opposed the document, the norms of which significantly increase the fiscal pressure on entrepreneurs and in a crisis such norms actually prevent a full recovery for business.

The Executive Director of the Union Kateryna Glazkova announced the list of norms that, in the opinion of business, should be removed and norms that need to be changed for their unambiguous interpretation:

1. introduction of the institute of guilt in tax offenses;
2. introduction of the concept of economic effect of the transaction in relations with a non-resident;
3. determination of tax consequences depending on the actual conduct of the parties;
4. the need to describe the existence of a business purpose when purchasing works / services from a non-resident;
5. introduction of complex tools of tax control (business purpose, constructive dividends, controlled foreign companies, complication of calculation of rules of thin capitalization), etc.
6.  extension of term to 7 years during which the controlling body has the right to accrue liabilities in case of inspection of the transaction and / or verification of tax liabilities of tax agents regarding personal income tax, military duty when paying wages, etc.
7.  new fines for violation of terms of registration of tax invoices / calculations, adjustments to them, even for tax invoices for transactions without value-added tax or at 0 rate. Such a norm has no practical significance for the budget.
8. the right of the controlling body to require “other documents and information necessary to establish compliance of the conditions of the controlled operation with the principle of “outstretched arm”. Without specifying the documents and exhaustiveness of their list such a norm actually allows the tax authority to require any amount of any documents at its discretion within 15 days.

From tomorrow and during the next week an intensive work at the level of business associations, the Office of the President of Ukraine, the relevant Committee of the Parliament and experts on amendments to the Law is planned. We hope that the burdensome norms for business, mentioned at the meeting by the Union of Ukrainian Entrepreneurs, will be excluded and corrected in the Law. The Union expects that the changes made with the business community will be voted on by MPs in June.