#Tax disputes Archives - Page 2 of 4 - Law firm Finance Business Service: offshore registration, tax planning, legal services

The Cabinet of Ministers Has Approved a List of States (Territories) Where the Operations with Residents are Recognized as Controlled for the Purposes of TP

Published: Ролан Бондарец | 28.12.2017 |

On December 27, 2017, the Cabinet of Ministers of Ukraine approved a new list of states (territories) where the operations with residents are recognized as controlled for the purposes of transfer pricing. It was due to the recent changes in the selection criteria. The new list was formed according to the following criteria: state (territories) where the corporate income tax rate is 5 and more percentage points lower than in Ukraine (that is, below 13%); states with which Ukraine has not concluded international agreements containing provisions on the exchange of information; states which competent authorities do not provide timely and complete exchange of tax and financial information for the requests of the SFS. When considering the criterion of the rate of corporate income tax, not only basic but also preferential rates for individual industries, territories, and types of activities were taken into account. Operations with a counterparty registered in the state (in the territory) entered in the approved list are recognized as controlled ones for the purposes of transfer pricing from the 1st of January of the reporting year, following the calendar year in which the states...

Single Judicial Information and Telecommunication System (SJITS) within the Framework of the Code of Administrative Court Procedure

Published: Ролан Бондарец | 26.12.2017 | blog

It’s not a secret for anyone that in order to protect your rights and protected interests, in the event of a tax dispute, taxpayers apply to the district administrative courts. Since December 15, 2017, the procedure of appeal and the consideration procedure in the district administrative courts has changed significantly, in connection with the entry into force of the new edition of the Code of Administrative Court Procedure of Ukraine. The number of novels that appeared in the new edition of the Code is quite significant. In this article, I would like to provide an overview of such an innovation in administrative procedure as the Single Judicial Information and Telecommunication System. Article 18 of the Code of Administrative Court Procedure of Ukraine defines the tasks that are imposed on the Single Judicial Information and Telecommunication System (hereinafter - the System): registration of documents entering the court (which may be the subject of litigation); determination of the judge(s) for the consideration of the case; exchange of documents (sending and receiving documents) in electronic form between the courts, between the court and the participants to the legal...

Procedural Codes will Undergo Another Changes

Published: Ролан Бондарец | 21.12.2017 | news

The Verkhovna Rada of Ukraine has registered changes in the Code of Civil Procedure, the Code of Economic Procedure and the Code of Administrative Court Procedure provided for by three relevant draft laws. We remind that on December 15, the Law which had already been amended by these codes came into effect. However, as it was noted in the explanatory notes to the latest drafts, it was adopted in violation of the regulation. In addition, the Law contains a number of contradictory norms, on the correction of which the proposed changes are aimed. In general, it is proposed to rewrite the editions of the CCP, CEP and CACP, which have just come into effect. During the consideration of the procedural codes in the parliament, none of the amendments proposed by the deputies was adopted, although several thousand amendments were submitted at the stage of their preparation. Instead, before voting for the Law as a whole, only amendments were brought to a vote approved by the profile...

Sales Threshold without Cash Registers Has Been Raised to 250-500 thousand UAH per Year

Published: Ролан Бондарец | 20.12.2017 |

The Cabinet of Ministers of Ukraine has increased the threshold of the annual sales volume without using the RCT (registrar of clearing transactions) from 75-200 thousand UAH up to 250-500 thousand UAH per one structural subdivision of the subject, depending on its organizational form and activity. Such changes are provided for by the Resolution of the CMU, as reported by the information agency “Interfax-Ukraine”. As noted, it will enable business entities that have several separate objects of trade (provision of services) not to use the RCT in the event that none of them exceeds the threshold of clearing transactions. According to the explanatory note, which the IA possesses, the Resolution also provides that the enterprises which annual income exceeds UAH 1 million are required to use cash registers, regardless of the type of their activity. The document does not apply to economic entities that carry out retail trade of excisable goods, as well as technically complex household goods. The Resolution defines a list of activities that are exempted from compulsory use of the RCT, in particular the provision of public services on the territory of villages. According to the State...

On December 15, Amendments to the Procedure for Issuing Individual Licenses of the NBU for Transfer of Foreign Currency Abroad Came into Effect

Published: Ролан Бондарец | 15.12.2017 | news

According to the report of press service of the National Bank of Ukraine, today, on December 15, the amendments to the procedure for issuing individual licenses for the transfer of foreign currency abroad came into effect. The innovations provided by the Resolution of the Board of the NBU No.130 of December 14, 2017 “On Amendments to the Regulations on the Procedure for issuing individual licenses for the transfer of foreign currency outside Ukraine for the payment of bank metals for certain currency transactions”...

Automatic Blocking System of TI Will Be Temporarily Suspended

Published: Ролан Бондарец | 13.12.2017 |

The changes provided by the amendments to the draft Law “On Amendments to the Tax Code of Ukraine regarding the Balance of Budget Revenues in 2018” has been made in the procedure of the blocking system of tax invoices. According to the announcement made on December 7, 2017, the following has been done: 1. Clause 74.2 of the TCU has been deleted, which stipulates that the URTI ensures constant automated monitoring of the compliance of TI/AC with the criteria for assessing the degree of risk sufficient to suspend the registration. This provision will come into force on the day following the day of the publication of the Law. It is also noted that, within two months from the date of entry into force of the Law, the Cabinet of Ministers must: determine the procedure for suspension of the registration of TI/AC in the URTI in accordance with clause 201.16 of the TCU; ensure the revision and bringing of the normative legal acts in compliance with this Law by the ministries and other central executive bodies. In addition, the Cabinet is obliged, within a period of three months from the date of entry into force of this Law: to adopt the normative legal acts which are necessary...

Next changes in the criteria for risk assessment

Published: Ролан Бондарец | 21.11.2017 | blog

At the beginning of November 2017, we have already analyzed the draft proposed by the Ministry of Finance of Ukraine on amending Order No.567 of 13.06.2017 “On approval of the criteria for risk assessment sufficient to suspend the registration of tax invoice/adjustment calculation in the Unified Register of Tax Invoices” (hereinafter - Criteria). At present, the changes to the criteria have been made and entered into force on November 17, 2017. They are approved by the Order of the Ministry of Finance No.926 of 09.11.2017 and registered with the Ministry of Justice of Ukraine under No.138/31250 on November 13, 2017. It should be noted that the changes that have been made and their project differ significantly from each other. The experts of Finance Business Service have been considering the essence of the latest innovations and how they will affect the business. First, the clause 3 of the Criteria is set out in a new version, namely in the part that concerns the automatic recording of the information by the monitoring system, submitted by the taxpayer in the prescribed form. As for the payers, agricultural commodity producers, automatic accounting of information is carried...

New EU Directive to Resolve Double Taxation Disputes Has Been Adopted

Published: Olena Vydysh | 09.11.2017 |

The existing European mechanisms for arbitration resolution of tax disputes on double taxation, prescribed in tax agreements and in accordance with the EU Arbitration Convention, do not always result in effective resolution of tax disputes. The recent monitoring carried out by the Council of the European Union revealed certain shortcomings, especially in relation to accessibility of dispute resolution mechanisms, as well as the length and effective conclusion of the procedure. According to the European Commission, the estimated figure of tax disputes on double taxation in the EU is about 900, with approximately 10.5 billion euros at stake. In this regard, on October 10 this year, the EU Council approved the Directive to resolve tax disputes (hereinafter - the Directive). The directive is aimed at changing the current situation, when the scope for mandatory arbitration in dispute resolution is limited to the issues of transfer pricing adjustments and the profit distribution of related persons. Thus, legal persons and natural persons will be able to resolve all disputes related to the interpretation and application of agreements that provide for the elimination of double taxation...

Automated tax administration system or “manual control”: what to expect from proposed changes in the risk criteria for suspension of registration of tax invoices?

Published: Ролан Бондарец | 01.11.2017 |

The Ministry of Finance of Ukraine has issued a new draft on amending Order No.567 of 13.06.2017 “On Approval of the Criteria for assessing the risk level sufficient for suspension of registration of a tax invoice/adjustment calculations in the Unified Register of Tax Invoices”. The experts of Finance Business Service have considered what kind of changes may happen and whether they will simplify the “life” for business. Having removed the issue of regulatory technology and consistency of terminology, to which lack in some normative acts of the Ministry of Finance we are already accustomed, let us try to understand the consequences that taxpayers will have to face if such changes are adopted. Thus, the draft suggests introducing certain changes in the part of provision of the possibility not to take into account taxpayer data filed in the prescribed form, so-called “technological table”, by the State Fiscal Service of Ukraine. In which cases does the Ministry of Finance propose not to take into account the “technological table”? The Ministry of Finance defines two such cases, namely, when the supervisory body has received: Information that the “technological...

Will pressure on business decrease due to changes to risk assessment criteria?

Published: Ролан Бондарец | 17.10.2017 |

It is well-known that from July 1, 2017, taxpayers have faced significant problems related to suspension of the registration of tax invoices. Before launching the system of "blocking" of tax invoices, the Ministry of Finance of Ukraine stated that the problem of suspension of the registration of tax invoices for manufacturers, service providers, and agricultural producers would be solved by submitting data in the established form of the so-called "technological table". However, in practice everything turned out to be completely different, and therefore these categories of enterprises are forced to file notice constantly, explanations and a "technological table" for each suspended tax invoice. That is, the promises of the Ministry of Finance of Ukraine were not kept, which caused quite justified discontent among small and medium businesses. The Ministry of Finance is trying to rectify the situation by amending paragraph 3 of the "Criteria for assessing the risk degree sufficient to suspend the registration of the tax invoice/adjustment calculation in the Unified Register of Tax Invoices" approved by Order No.567 of 13.06.2017 (hereinafter - the Criteria). The amendments to the...

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