Tax disputes: Lawyer blog — Finance Business Service

Authorized Capital of LLC: What You Need to Know

Published: 11.05.2018 |

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Finance Business Service reminds that on 17.06.2018 the Law of Ukraine “On Limited Liability Companies” will come into force. Thus, there will be significant changes in the near future regarding the most widespread organizational and legal forms of a business entity, a limited liability company. That is, will the creation of a company, the formation of the authorized capital, the inclusion and exclusion of members of the company, management of the company, etc., take place under the new rules? In any case, the creation of a company can not be carried out without the formation of the authorized capital. The experts of Finance Business Service were analyzing the innovations in the formation of the authorized capital. As you know, the authorized capital of a limited liability company consists of contribution from its participants. The size of the authorized capital of a company will consist of the nominal value of the shares of its participants, expressed in the national currency of Ukraine and may be further determined in percentage. There are no innovations in relation to the minimum size of the authorized capital. That is, the issue of establishment of the minimum and maximum...

V International Tax Forum through the eyes of the experts of FBS

Published: 18.04.2018 | blog

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#Tax disputes #Taxation

The partner of Finance Business Service Yuri Krasilnikov and tax disputes specialist Rolan Bondarets attended the V International Tax Forum, which took place on April 13, 2018. In this blog, we will tell how the event was held, what issues were most actively discussed by the participants, what points were voiced by the speakers, as well as share our own thoughts. The speakers were the representatives of business, representatives of the legislative, executive and judicial branches, as well as the specialists in the field of taxation. Many interesting and topical issues for Ukraine were discussed within the Forum. At the beginning of the event, Algirdas Shemeta - the business ombudsman in Ukraine - recalled the reasons that led to the appearance of the BEPS (Base Erosion and Profit Shifting) plan and its essence. “Overoffshorization” of the world business became the catalyst of the world economic crisis of 2008-2009. This prompted the OECD to identify the main causes of the crisis, as well as to discover and develop the methods for its prevention in the future. In fact, BEPS has emerged as a protective mechanism to prevent tax evasion, which essence is that companies must be...

What changes have been made to the system for blocking tax invoices

Published: 29.03.2018 |

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#Tax disputes #Taxation

As we noted earlier, pursuant to the Law of Ukraine No. 2245-VII of 07.12.2017 “On Amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine to ensure the balance of budget revenues in 2018”, the Cabinet of Ministers of Ukraine adopted Resolution No. 117 of 21.02.2018, which approved: “The procedure for suspension of registration of the tax invoice/calculation adjustment in the Unified Register of Tax Invoices”, “The organization of work of the commissions that decide to register a tax invoice/calculation adjustment in the Unified Register of Tax Invoices or refusal in such registration”, “Procedure for considering complaints against the decisions of the commissions that decide to register a tax invoice/calculation adjustment in the Unified Register of Tax Invoices or refuse to register them”. If the basic algorithm for suspending the registration of tax invoices and calculation adjustments (TI/CA) has remained almost unchanged, then the order of their “unlocking” has undergone significant changes. We will figure out what exactly has been changed, and whether this will simplify the life of the taxpayers. As before, the taxpayer will be...

Blocking of tax invoices in a new way: how will it be?

Published: 14.03.2018 |

In order to fulfil the requirements of the Law of Ukraine No. 2245-VII “On Amendments to the Tax Code of Ukraine and certain legislative Acts of Ukraine to ensure the balance of budget revenues in 2018” of 7.12.2017, the Cabinet of Ministers of Ukraine adopted the Resolution No. 117 of 21.02.2018 which approved: the procedure for suspending the registration of the tax invoice / calculation adjustments in the Unified Register of Tax Invoices; the operating procedure of commissions that take decisions on the registration of a tax invoice / calculation adjustments in the Unified Register of Tax Invoices or refusal of such registration; the procedure for considering complaints against decisions of commissions that take decisions on registration of a tax invoice / calculation adjustments in the Unified Register of Tax Invoices or refusal of such registration. What has been fundamentally changed? The first thing I want to note is that previously, only the business transaction that was reflected in the tax invoice was subject to monitoring. And now the monitoring of the tax invoice / calculation adjustment (hereinafter - the tax invoice) is carried out according to the following...

Changes in transfer pricing

Published: 21.02.2018 |

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#Tax disputes #Tax reporting

As we have noted earlier, numerous amendments to the tax legislation have been introduced by the Law of Ukraine No. 2245-VII “On Amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine regarding ensuring the balanced budget income in 2018”. In this article, we want to highlight the changes that transfer pricing has undergone, namely the changes introduced by the above-mentioned Law in article 39 of the Tax Code of Ukraine. The first significant step has been the introduction of changes in the criteria that are applied by the Cabinet of Ministers of Ukraine in determining “low-tax” states (territories). If previously, one of such criteria has been the existence of a profit tax rate in the state (territory), which is 5 and more percentage points lower than in Ukraine (subparagraph 39.2.1.2, paragraph 39.2, article 39 of the TCU), but now, except for the low rate of income tax, those states (territories) “that provide economic entities with preferential taxation regimes or in which the features of calculating the tax base actually allow business entities not to pay corporate income tax (corporate tax) or pay it at the rate, which is 5 percentage...

New Supreme Court, the first “new” legal positions: What to expect and what to hope for?

Published: 31.01.2018 |

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#Court #Tax disputes

Despite all the advantages and disadvantages of the judicial reform that is taking place in Ukraine, the legal community and business nevertheless have placed certain hopes on the new Supreme Court and its focus on the rule of law, as well as on the fact that when considering cases and forming legal positions, it will take into account the practice of the European Court of Human Rights. Such hopes were not groundless, as Article 6 of the Code of Administrative Procedure of Ukraine indicates that “the Court applies the principle of the rule of law, taking into account the jurisprudence of the European Court of Human Rights” (other procedural codes contain similar provisions). Part 1 of Article 36 of the Law of Ukraine “On judicial system and status of judges” states: “The Supreme Court is the highest court in the judicial system of Ukraine, which ensures the constancy and unity of judicial practice in the order and manner prescribed by the procedural law”. It's no secret that there have been absolutely opposite positions of the courts for many years regarding the application of tax consequences in that case when a court verdict (or only the director’s explanations) on...

Unblocking Tax Invoices: Will It Be the Same for Everyone?

Published: 17.01.2018 | blog

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#Tax disputes #Tax planning

Before New Year, our legislators traditionally adopt and publish numerous changes in the tax legislation. The change from 2017 to 2018 was no exception. Thus, on December 7, 2017, the Law of Ukraine No.2245-VII “On Amending the Tax Code of Ukraine and Certain Legislative Acts of Ukraine on Ensuring the Balance of Budget Revenue in 2018” was adopted and officially published on December 30, 2017 (newspaper “Golos Ukrainy” No.248 (6753) dated December 30, 2017). The Law provides for the numerous changes in the tax legislation. The most expected change for business, perhaps, was the abolition of the “blocking” of tax invoices from January 1, 2018, at least until March 1, 2018. It became possible in connection with the exclusion of clause 74.2, article 74, of the Tax Code of Ukraine, which provided for the continuous automated monitoring of tax invoices and adjustment calculations for compliance with the criteria for the risk assessment sufficient to stop the registration of such tax invoices/adjustment calculations. In addition, paragraph 201.16 Art. 201 of the Tax Code of Ukraine has also been amended, according to which (new edition) “registration of a tax...

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

Published: 26.12.2017 |

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#Tax disputes #Taxes

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...

Next changes in the criteria for risk assessment

Published: 21.11.2017 |

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: 09.11.2017 | blog

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#Double taxation #Legislation #Tax disputes #Tax planning Transfer pricing

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...

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