IT HAS BEGUN!!! SUSPENSION OF REGISTRATION OF TAX INVOICES
Questions regarding suspension of registration of tax invoices
And again back to the registration of the tax invoices, namely concerning the grounds for the suspension of their registration.
As the representatives of the Ministry of Finance of Ukraine assured us, that the percentage of suspended tax bills will be minimal, but on the seventh day of work of the system of blocking, the first “victims” have appeared.
And the first “victim” was the producers. Why? Because the monitoring system, in fact, compares the amount of the purchased goods with the amount of the goods sold in the context of its nomenclature. Certainly, there are certain questions” to the manufacturer in the program of blocking ” – one product was purchased and another sold.
But it should be understood that this is quite logical, because the manufacturer does not resale the goods but he creates a new product from the purchased components (raw materials, etc.).
The experts of the Finance Business Service were considering how the issue of blocking the registration of tax invoices was solved and if it does not have any contradictions.
The clause 201.16. art. 201 of the Tax Code of Ukraine determines that in case of suspension of the registration of the tax invoice, the taxpayer has the right within 365 days to submit: written explanations and / or copies of the documents. It is also stated about the mandatory availability of the proposal to provide explanations and the copies of documents in the requirements to the receipt on the suspension of the registration of the tax invoice .
That is it concerns the explanations and copies of documents in the Tax Code of Ukraine.
However, for unknown reasons, the Ministry of Finance of Ukraine has approved the need to provide “information” and even in specific form by the Order No. 567 of June 13, 2017.
We remind you that the Ministry of Finance of Ukraine was supposed to approve an exhaustive list of the documents, and not the forms in which the information must be submitted.
According to the Ministry of Finance of Ukraine, this “information” will reflect the specificity of the taxpayer’s economic activities separately for each type of economic activity. That is, in fact, the enterprise reveals its production process, its internal work. But the paradox is that this “information” may not be taken into account by the SFS of Ukraine. Hence, there are questions:
1) what are the basis of the norms of law that the Ministry of Finance approves the form of providing information on the specifics of the economic activities of the taxpayer?
2) on what grounds can the SFS not take this information into account? How can the SFS not be satisfied with the specifics of the enterprise’s activities? Is it permissible for the SFS to make changes in the specifics of the activity, or to require its change from a taxpayer?
Only one of these issues is answered by the Ministry of Finance of Ukraine. To the question – when the information provided in the prescribed form (!?) may not be taken into account by the SFS Commission (the decision is made), the Ministry of Finance of Ukraine answers – “in the event if the controlling body received the information indicating that the payer provided unreliable information according to the annex to these criteria “(the last paragraph clause 5 of the risk assessment criteria).
However, this answer raises a number of other questions: what kind of information can it be, from whom is it provided, how is it provided, what or by whom is this information confirmed, and what does it mean “testifies” (testifies – this is generally an appraisal concept)? The Ministry of Finance of Ukraine does not answer these questions. It is also unknown how this decision will be formalized (because the possibility of such a decision by the controlling body is not provided by the Tax Code of Ukraine) and is it subject to appeal? Thus, there are questions, but no answers.
However, the lack of specificity on these issues gives the Commission of the SFS very broad powers to assess the information and its unreasonable acceptance or rejection. In fact, the taxpayer will have to refute any speculation and fabrications of the Commission of the SFS. The question how to do this remains open.
Meanwhile, the formation of the tax indicators will remain blocked. That leads to the actual manual, artificial manipulation of the right of the enterprise to form its tax indicators.
And what about p. 74.1. art. 74 of the Tax Code of Ukraine, which determines that the databases of information, telecommunications and information and telecommunications systems store the information collected in accordance with the current Code?
Proceeding from this norm, the information collected in accordance with the Order of the Ministry of Finance (and not in accordance with the TCU) cannot be stored, in fact, in the information systems, as well as be taken into account by the Commission of the SFS!
That is, our legislator, along with the rest bodies of the state authorities entitled to issue by-laws, again and again create legal conflicts, forgetting about the existence of standard-setting techniques and the need to harmonize the terminology, which creates additional difficulties in the interpretation of tax legislation by the taxpayers, which will transfer the burden of considering the enforcement of these norms once again to the district administrative courts.
Regarding the criteria for the suspension of the registration of tax invoices, the Ministry of Finance of Ukraine has designated two of them.
If the registration of a tax invoice is suspended by one of the above reasons, in order to overcome this situation, the Ministry of Finance of Ukraine has defined an “exhaustive” list of documents which is sufficient for making a decision on the registration of a tax invoice.
It is very strange, that the same list of the documents is provided both for the first and second cases. It is still unknown what the Finance Ministry of Ukraine wanted to say by it. Although for unknown reasons, the Ministry of Finance of Ukraine identified these grounds with different subparagraphs, probably to increase the volume of the document itself because it did not affect the semantic load.
It is also difficult to call it the exhaustive list, it is most likely a general list of the documents that the taxpayer should have.
And, to tell the truth, on determining that an “exhaustive list of documents” should be approved, the legislator has probably gone wrong. As making such a list for all cases of life is simply unrealistic. Therefore, such requirements specified in the Tax Code of Ukraine are knowingly controversial and impossible to implement that can provoke an endless range of litigation, because, having such formulations, each of the parties will be right to some extent. Therefore, everything goes again into the plane of appraisal concepts which will have to be decided in the courts.
It is unknown how the commission of the State Fiscal Service will respond to the explanations provided by the manufacturer and supporting documents, but the specialists of Finance Business Service watch the development of these events and continue to cover their development and application practices. Questions regarding suspension of registration of tax invoices
IT HAS BEGUN!!! SUSPENSION OF REGISTRATION OF TAX INVOICES
Questions regarding suspension of registration of tax invoices
And again back to the registration of the tax invoices, namely concerning the grounds for the suspension of their registration.
As the representatives of the Ministry of Finance of Ukraine assured us, that the percentage of suspended tax bills will be minimal, but on the seventh day of work of the system of blocking, the first “victims” have appeared.
And the first “victim” was the producers. Why? Because the monitoring system, in fact, compares the amount of the purchased goods with the amount of the goods sold in the context of its nomenclature. Certainly, there are certain questions” to the manufacturer in the program of blocking ” – one product was purchased and another sold.
But it should be understood that this is quite logical, because the manufacturer does not resale the goods but he creates a new product from the purchased components (raw materials, etc.).
The experts of the Finance Business Service were considering how the issue of blocking the registration of tax invoices was solved and if it does not have any contradictions.
The clause 201.16. art. 201 of the Tax Code of Ukraine determines that in case of suspension of the registration of the tax invoice, the taxpayer has the right within 365 days to submit: written explanations and / or copies of the documents. It is also stated about the mandatory availability of the proposal to provide explanations and the copies of documents in the requirements to the receipt on the suspension of the registration of the tax invoice .
That is it concerns the explanations and copies of documents in the Tax Code of Ukraine.
However, for unknown reasons, the Ministry of Finance of Ukraine has approved the need to provide “information” and even in specific form by the Order No. 567 of June 13, 2017.
We remind you that the Ministry of Finance of Ukraine was supposed to approve an exhaustive list of the documents, and not the forms in which the information must be submitted.
According to the Ministry of Finance of Ukraine, this “information” will reflect the specificity of the taxpayer’s economic activities separately for each type of economic activity. That is, in fact, the enterprise reveals its production process, its internal work. But the paradox is that this “information” may not be taken into account by the SFS of Ukraine. Hence, there are questions:
1) what are the basis of the norms of law that the Ministry of Finance approves the form of providing information on the specifics of the economic activities of the taxpayer?
2) on what grounds can the SFS not take this information into account? How can the SFS not be satisfied with the specifics of the enterprise’s activities? Is it permissible for the SFS to make changes in the specifics of the activity, or to require its change from a taxpayer?
Only one of these issues is answered by the Ministry of Finance of Ukraine. To the question – when the information provided in the prescribed form (!?) may not be taken into account by the SFS Commission (the decision is made), the Ministry of Finance of Ukraine answers – “in the event if the controlling body received the information indicating that the payer provided unreliable information according to the annex to these criteria “(the last paragraph clause 5 of the risk assessment criteria).
However, this answer raises a number of other questions: what kind of information can it be, from whom is it provided, how is it provided, what or by whom is this information confirmed, and what does it mean “testifies” (testifies – this is generally an appraisal concept)? The Ministry of Finance of Ukraine does not answer these questions. It is also unknown how this decision will be formalized (because the possibility of such a decision by the controlling body is not provided by the Tax Code of Ukraine) and is it subject to appeal? Thus, there are questions, but no answers.
However, the lack of specificity on these issues gives the Commission of the SFS very broad powers to assess the information and its unreasonable acceptance or rejection. In fact, the taxpayer will have to refute any speculation and fabrications of the Commission of the SFS. The question how to do this remains open.
Meanwhile, the formation of the tax indicators will remain blocked. That leads to the actual manual, artificial manipulation of the right of the enterprise to form its tax indicators.
And what about p. 74.1. art. 74 of the Tax Code of Ukraine, which determines that the databases of information, telecommunications and information and telecommunications systems store the information collected in accordance with the current Code?
Proceeding from this norm, the information collected in accordance with the Order of the Ministry of Finance (and not in accordance with the TCU) cannot be stored, in fact, in the information systems, as well as be taken into account by the Commission of the SFS!
That is, our legislator, along with the rest bodies of the state authorities entitled to issue by-laws, again and again create legal conflicts, forgetting about the existence of standard-setting techniques and the need to harmonize the terminology, which creates additional difficulties in the interpretation of tax legislation by the taxpayers, which will transfer the burden of considering the enforcement of these norms once again to the district administrative courts.
Regarding the criteria for the suspension of the registration of tax invoices, the Ministry of Finance of Ukraine has designated two of them.
If the registration of a tax invoice is suspended by one of the above reasons, in order to overcome this situation, the Ministry of Finance of Ukraine has defined an “exhaustive” list of documents which is sufficient for making a decision on the registration of a tax invoice.
It is very strange, that the same list of the documents is provided both for the first and second cases. It is still unknown what the Finance Ministry of Ukraine wanted to say by it. Although for unknown reasons, the Ministry of Finance of Ukraine identified these grounds with different subparagraphs, probably to increase the volume of the document itself because it did not affect the semantic load.
It is also difficult to call it the exhaustive list, it is most likely a general list of the documents that the taxpayer should have.
And, to tell the truth, on determining that an “exhaustive list of documents” should be approved, the legislator has probably gone wrong. As making such a list for all cases of life is simply unrealistic. Therefore, such requirements specified in the Tax Code of Ukraine are knowingly controversial and impossible to implement that can provoke an endless range of litigation, because, having such formulations, each of the parties will be right to some extent. Therefore, everything goes again into the plane of appraisal concepts which will have to be decided in the courts.
It is unknown how the commission of the State Fiscal Service will respond to the explanations provided by the manufacturer and supporting documents, but the specialists of Finance Business Service watch the development of these events and continue to cover their development and application practices.