The President of Ukraine signed Law of Ukraine No. 1217-IX “On Amendments to Certain Legislative Acts of Ukraine Concerning Record of Employee Employment in Electronic Form”, which entered into force on June 10, 2021.
The Law introduces the record of labor activity of an employee in electronic form in the register of insured persons of the State Register of Compulsory State Social Insurance. It regulates the mechanism of accumulation, processing and use of information, in particular to confirm the existing record of service and the appointment of pensions.
The Law provides for a five-year transition period for inclusion in the State Register of information from paper employment records of an employee (during this period, both the paper employment record and the electronic form of entered information on employment from the State Register will be used).
After entering the information about the employee’s employment in the State Register, the employer is obliged to hand over the original of the paper employment record to such an employee for signature. There is also an obligation for the employer to make entries in the paper employment record at the employee’s request on employment, transfer and dismissal.
In addition, the Law introduces the possibility of automatic appointment of a pension (without a personal application of a person) with the preservation of the person's right to defer retirement. At the same time, if a person postpones the appointment of a pension and continues to be employed, the amount of the pension will increase by 0.5-0.75%. Within the framework of automatic assignment of pensions, it is also possible to determine with the help of the State Register software the most advantageous option for assigning a pension, including the date of such assignment.
The State Tax Service of Ukraine has reported that the Tax Code of Ukraine does not provide for the definition of arithmetic or methodological errors and liability for them.
The definition of ‘arithmetic error’ should be understood as an error or omission made by the taxpayer when filling out declarations (calculations) or annexes to them, in particular, when performing arithmetic transactions provided for in the calculation of the object of taxation to determine tax liabilities tax, collection, mandatory payment (addition or subtraction of the relevant lines), as well as a mistake made when transferring data from the annexes, on the basis of which the relevant lines of the declaration are filled in (incorrect comma when applying the unit of measurement, incorrectly transferred result from the appendix and etc.).
‘Methodological error’ should be understood as an error made by the taxpayer during the preparation of the declaration, which consists in the incorrect application or non-application of tax rates or coefficients in determining the tax liability for a tax, levy (mandatory payment).
The definition of these terms is contained in the explanation of the Committee of the Verkhovna Rada of Ukraine on Finance and Banking No. 06-10/167 of March 20, 2001, as well as in the letter of the State Tax Administration of Ukraine No. 9018/7/23-3317 of July 6, 2001.
Article 14 of the Tax Code of Ukraine (hereinafter – the Tax Code) provides for the definition of concepts used in the TCU. In this article, the concepts of ‘arithmetic’ or ‘methodological errors’ are absent.
According to Art. 76 of the Tax Code provides for the procedure for conducting an in-house inspection. It is conducted by officials of the controlling body without any special decision of the head of such body or direction to conduct it.
All tax reporting is subject to in-house inspection in a continuous manner. The taxpayers consent to and their presence during the in-house inspection is not required. The order of registration of results of in-house inspection is carried out according to requirements of Art. 86 of the Tax Code.
Chapter 11 of the Tax Code does not provide for the application of liability to taxpayers in case of violations that do not lead to understatement of tax liabilities.
Given the above, the Tax Code does not provide for the definition of arithmetic or methodological error and liability for such errors.
The Social Insurance Fund of Ukraine has explained the peculiarities of e-sick leave recognition by the enterprise for the purpose of providing material support to the insured person.
The certificate of incapacity to work, which is formed in the Electronic Register of sick leaves, is the same basis for release from work, payment of the first five days of temporary incapacity, appointment of material support, as well as its paper version.
The generated certificate of incapacity to work on the day of creation becomes can be viewed in the user’s accounts of the insurer and the insured person on the web portal of electronic services of the Pension Fund of Ukraine, but until the end of its validity period cannot be used by the insured as a basis for material support. The generated certificate of incapacity to work because of ‘pregnancy and childbirth’ is transferred to the insurer as a basis for accrual of material support on the day of creation.
After the generation of e-sick leave in the user’s account of the insurer on the web portal of electronic services of the Pension Fund of Ukraine, the employer in accordance with Art. 32 of Law No. 1105 within ten days from the end of its validity period assigns material support to the insured person. For this:
- e-sick leave is printed or remains in electronic form in the personnel service or the responsible person of the personnel service (at the discretion of the employer);
- the personnel service or the responsible person of the personnel service determines the insurance length of service of the insured person (benefits) and the number of calendar days of incapacity to work to be paid at the expense of the employer and the Social Insurance Fund of Ukraine. This information, at the request (or definition of the employer), is formed in paper or electronic form;
- e-sick leave, information on the determined insurance period and the number of days of incapacity to work to be paid is transferred to the commission (commissioner) on social insurance of the enterprise;
- the commission on social insurance at enterprises continues its work and retains the full range of functions provided by the Regulations on the commission (commissioner) on insurance in connection with temporary disability, approved by the Board of the Social Insurance Fund of Ukraine No. 13 of July 19, 2018;
- the decision on appointment or refusal to appoint material support is transferred by the commission (commissioner) on social insurance of the enterprise to the accounting department of the enterprise, which accrues material support;
- accounting department calculates material support on the basis of e-sick leave (if necessary, its paper printout) and the decision of the commission (commissioner) on social insurance of the enterprise. This calculation is recorded in electronic or paper form (at the discretion of the employer) and reflected in the accounting entries;
- the application-calculation is filled in and submitted to the branch of the Fund at the place of registration.
