The First Ukrainian Tax Forum
28 October 2010
The First Ukrainian Tax Forum Held in Kyiv
The First Ukrainian Tax Forum 2010: Implementing Tax Service Reform in Ukraine According to European Standards, devoted to pressing issues in the development of Ukraine’s tax system, was held in Kyiv on 28 October 2010. The Forum was organized by the Council of Independent Accountants and Auditors, Ukrainian NGO.
IBSER has decided to support the Council’s initiative and step in as an information partner of Tax Forum 2010. A presence in the forum was important given the topic’s relevance and the fact that Budget Institute takes an active part in drafting and improving Ukrainian legislation as a task of the Municipal Finance Strengthening Initiative project, including the new Tax Code. The Budget Institute was represented at the forum by Artem Rudyk, Director of the Tax Policy and Monitoring Department and a member of the Public Council at the Verkhovna Rada Committee on Tax and Customs Policy.
The First Ukrainian Tax Forum 2010: Implementing Tax Service Reform in Ukraine According to European Standards, devoted to pressing issues in the development of Ukraine’s tax system, was held in Kyiv on 28 October 2010. The Forum was organized by the Council of Independent Accountants and Auditors, Ukrainian NGO.
IBSER has decided to support the Council’s initiative and step in as an information partner of Tax Forum 2010. A presence in the forum was important given the topic’s relevance and the fact that Budget Institute takes an active part in drafting and improving Ukrainian legislation as a task of the Municipal Finance Strengthening Initiative project, including the new Tax Code. The Budget Institute was represented at the forum by Artem Rudyk, Director of the Tax Policy and Monitoring Department and a member of the Public Council at the Verkhovna Rada Committee on Tax and Customs Policy.
The Forum was also attended by Chairman of the State Tax Administration (STA) of Ukraine Oleksandr Papaika, Deputy Minister of Finance Tetyana Yefymenko, Chairwoman of the Verkhovna Rada Committee on Industrial and Regulatory Policy and Entrepreneurship Natalia Korolevska, Permanent Representative of the International Monetary Fund in Ukraine Max Alier, representatives of government ministries and agencies, business community, and international experts.
According to STA Chairman Oleksandr Papaika, European standards of taxation do more than provide modern formats and methods for stimulating entrepreneurial activity.
According to STA Chairman Oleksandr Papaika, European standards of taxation do more than provide modern formats and methods for stimulating entrepreneurial activity. “First of all, this also envisages transparency in conducting business, preserving one’s own spotless business reputation, understanding the importance of timely and full budget settlements, and strict accountability for any breach of tax laws,” said the STA Chairman.
Deputy Minister of Finance Tetyana Yefymenko believes the Tax Code is the first step towards implementing the reform of this country’s tax system. It could be amended after its approval, since the country is in the process of reforms, the economy is developing, and there is a need to adapt to the present-day conditions. “However, amendments should only be made once a year and within the agenda of reforms. A strong State should stand alongside strong business, and the Tax Code would create the preconditions for this,” the Deputy Minister emphasized.
“The Tax Code means a system of relations between the State and the payer. It must provide equal conditions, fair rules of the game for all market players. An honest payer should have preferential treatment,” emphasized Deputy Chairman of STA Serhiy Lekar’.The Forum participants also discussed the issues of rapprochement between bookkeeping and tax accounting, tax inspections, tax disputes, taxation of nonresidents, use of transfer prices in tax accounting, etc.
International experts also shared with the participants their countries’ experiences in implementing tax systems reform.
It was noted at the conference that the Ukrainian tax system is undergoing some positive changes thanks to the influence of European integration processes:
а) the world experience of using information technology is being introduced by tax authorities in day-to-day operations of at all levels;
b) a risk-based system for the selection of taxpayers for documentation inspections is being developed;
b) a risk-based system for the selection of taxpayers for documentation inspections is being developed;
c) an automatic comparison between tax credit data and tax obligations in value-added tax has been implemented; d) the organizational structure of State Tax Service units is being streamlined, as well as the number of tax system personnel.
“Today, a reform process is underway in the tax service units. For example, 20 percent staff cuts are planned for STA Head Office and regional tax administrations. On the other hand, the tax inspectorates, which are working directly with taxpayers, will be strengthened. This will help avoid lines at tax offices and create all the necessary conditions for taxpayer convenience,” STA Chairman Oleksandr Papaika said at a press briefing.
Prepared based on materials of the State Tax Administration of Ukraine website:
Glyanec