The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the State Audit Service of Ukraine” of 03.02.2016, № 43 approved the Regulations on the State Audit Service (hereinafter - Regulation).
The Regulation defined the powers of the State audit service, in particular, control of:
- specific, effective use and preservation of state financial resources, non-current assets and other;
- budgetary savings achieving and efficiency in the activity of managers of budget funds;
- compliance with the law at all stages of the budget process on state and local budgets;
- compliance with the legislation on public procurements;
- the state of internal control and internal audit;
- an evaluation of management of the budget funds by reaching their savings as well as their state of financial and economy activity, efficiency and performance of controlled organizations;
- adoption of measures for elimination of law violations discovered during the state financial control and bringing to responsibility of guilty people etc.
The State Fiscal Service of Ukraine in its letter “On the possibility of providing of reimbursable financial assistance to another legal entity (individual - entrepreneur) by a legal entity- unified tax payer of the third group” of 05.02.2016, № 2503/6/99-95-42-03-15 confirmed the right of legal entities - unified tax payers of the third group to provide reimbursable financial assistance to another legal entity (individual - entrepreneur). The amount of financial assistance provided by the legal entity - unified tax payers of the third group on a repayable basis in case of its return should not be included in the income of such payer.
In addition the state fiscal control cautions that the activities of a legal entity - unified tax payers of the third group with provision of reimbursable financial assistance to other legal entities (individuals - entrepreneurs) on a regular basis could be considered as a financial intermediation.
The State Fiscal Service in Kyiv city in its letter “On reflection in tax accounting of exchange rate differences arising from calculation of obligations of the founders in the formation of the authorized capital” of 03.02.2016, № 1896/10/26-15-11-02-11 considered the point in question.
The subject to income tax is the profit determined by adjusting the financial result before tax defined in accordance with the National Regulations (Standards) or IFRS, on differences provided by para.III of the Tax Code of Ukraine (hereinafter - TCU). However, currently para.III of TCU does not provide for the adjustments on exchange rate differences. So in this case it should be guided by National Regulations (Standards), particularly by para.4 sec.8 of Accounting Standards 21 “Effects of Changes in Foreign Exchange Rates”.
The tax authorities emphasize in the letter that the exchange differences arising from calculation of obligations of the founders during formation of the authorized capital should not be recognized as income and to be reflected in additional capital.
The State Fiscal Service in Kyiv city by its letter “On reducing of income tax for the amount of accrued and paid tax on real property” of 03.02.2016, № 1897/10/26-15-11-02-11 reported that real property tax of 2015 would reduce the income tax of the same period.
The legislation provides that the amount of real property tax for the last base tax (reporting) quarter of the year should be defined as the difference between the annual amount of real property tax and the amount of tax on real property for base tax (reporting) quarters of the year, except the last one.
Thus, the advance payment of real property tax for IV quarter of 2015 (paid to 30 January 2016) should be declared in the tax return of the real property tax, other than land, for 2015.
The State Fiscal Service in Kyiv city in its letter “On the provision of the services to self-employed individuals by the unified tax payers of group 2” of 04.02.2016, № 71/В/26-15-12-02-14 explained that if an individual-entrepreneur – the second group unified tax payer provides services to self-employed person, who conducts independent professional activity (unified tax defaulter), such an entrepreneur violates the conditions established by TCU for unified tax payers of group 2.
Individuals, who carry out independent professional activities in accordance with the requirements of TCU, could not be classified as business entities that have the right to apply the simplified taxation system.
When the payment of incomes, directly related to the activities, to the business entities - tax agents individuals that conduct independent professional activity, the income tax at source of payment should not be withheld in case of providing by the individual of copy of certificate of his/her registration in tax registration as an individual conducting an independent professional activities. This rule should not be applicable in the case of accrual (payment) of income for the performance of certain work and/or the provision of services in accordance with civil law contract, the relationship under which to be established by labor relations, and the parties to the contract could be classified as employee or employer in accordance with the sub-paras.14.1.195 and 14.1.222 of TCU (para.178.5 of TCU).
The State Fiscal Service of Ukraine promises not to apply the administrative fines for late registration of the tax invoice (hereinafter - TI) in the Unified Register of tax invoices (hereinafter - URTI) (see category 101.31 ZIR).
Controllers note: if there is no registration of tax invoice in URTI on condition of reflection of the amounts of value added tax (hereinafter – VAT), under such TI condition in tax liabilities of reporting period does not provide for administrative liability (under Art. 163-1 of the Code of Ukraine on Administrative offenses) of the taxpayer - the seller of goods/services.
They explain the fact that the taxpayer, regardless of the fact of registration of VAT amount indicated in this TI, in the Unified Register, should reflect in the tax liabilities of the reporting period, and it does not lead to violation of the procedure of tax accounting.
Registration period generally established in TI in URTI and adjustment calculations to them is 15 days. In case of its violation to the taxpayer to be applied the penal sanctions under Art.120-1 of TCU in amounts that vary depending on the number of days of delay of such registration.
The Supreme Administrative Court of Ukraine in its Resolution of 11.11.2015 in case № 815/1224/15(К/800/26909/15) stated: to provide proper protection of the rights of taxpayers in case of appointment of documentary remote audit, the taxpayer is entitled to appeal against respective decisions (including the orders of audit appointment), actions or inaction of the supervisory authority, regardless of whether such an audit actually made, even after the registration of its results in the form of a corresponding act (certificate).
According to the results of consideration of relevant claims of taxpayers, courts should assess the legality of appointment and purpose of such inspections and make a decision on legality or illegality of the order of appointment of inspection or actions for its implementation. However legal consequence of adoption of the judgment on inspection illegality should be recognition of absence of tax audit as a legal fact. Accordingly, any tax notices-decisions, made based on results of relevant remote audit, should be automatically recognized as illegal.
