The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to the Budget Code of Ukraine” of 20.12.16, № 1789-VIII and provided the state support to agricultural producers. In particular, they will annually receive funds from the state budget in the amount of not less than 1% production output in agriculture. At the same time, they should send 20% of such support to purchase at the producers of agricultural machinery and equipment (in 2017 − 10% and in 2018 − 15%).
The Verkhovna Rada of Ukraine regulated relations between the state and local budgets by this law. Also, there were clarified directions of use of educational and medical subventions that to be provided from the state budget to local budgets, and the list of expenses provided for transmission to the financial support from the local budgets.
The Cabinet of Ministers of Ukraine by its Resolution “On approval of the Procedure for the control in the sphere of state registration” of 21.12.16, № 990 identified the mechanism of monitoring of subjects of the state registration. The Ministry of Justice of Ukraine will use two mechanisms for the control of the activity of subjects to the state registration and the state registrars:
- consideration of complaints against decisions, actions or inaction in the field of state registration;
- constant monitoring of registration actions in the Unified State Register of legal entities, individuals-entrepreneurs and public organizations and in the State Register of real rights on immovable property.
The Government identified bases and criteria for such monitoring. Revealed violations will become the basis for the desk audit of the state registrars and/or state registration subjects by the Ministry of Justice.
Also, in the case of detection of failure to provide by a legal entity to the state registrar of information on the ultimate beneficial owner (controller) of the legal entity, the executive officer of the Ministry of Justice should make up a protocol on administrative offense under Art. 16611 of the Code on Administrative Offences (hereinafter – CAO) against the head of the legal entity or person authorized to act on behalf of the legal entity (executive body).
The Cabinet of Ministers of Ukraine by its Resolution “Certain issues of social protection of disabled children and persons with disabilities” of 14.12.16, № 978 stated the Standard Regulations on the orphanage-residential care facility in a new version. The updated document, among other things, provides for the establishment various innovative departments (groups) at the orphanages: day care, a five-day hospital care, transit accommodation, supported living, palliative care. Children can stay in the institution, not only around the clock, but during the day, they have the right to temporarily drop out from the institution for six months (but not for two as before).
New Standard Regulations defines the indications and contraindications for placement of children in the orphanage, provides the social services by concluding a contract.
The State Fiscal Service of Ukraine (hereinafter − SFSU) in its letter “On the procedure for declaring the incomes of individuals” of 12.12.16, № 39537/7/99-99-13-01-03 reminded that income declaration campaign begins on January 1, 2017. It is for those who are obliged to submit the declaration in accordance with the law, and those who have a right to receive capital allowances. Tax authorities note that the updated declaration form should be applied.
The SFSU also pays attention: receiving the incomes from two or more tax agents in excess of 120 minimal wages does not require submission of the declaration (in fact in 2016 a progressive scale was dormant, and the general rate was 18% of tax).
The State Fiscal Service of Ukraine in its letter “On the maximum amount of cash settlements” of 19.12.16, № 13583/М/99-99-13-04-02-14 explained that entrepreneurs should not be brought to the financial responsibility for violation of cash discipline for the failure to comply with the requirements on restriction of cash payments businesses (entrepreneurs) between them in the amount of over 10 UAH thousand. The entrepreneur will not go unpunished – he/she should be brought to administrative responsibility for violation of the procedure of cash payments for goods (services), including the excess of the maximum amount of cash settlements (Article 1651 of the Administrative Code).
Thus, the administrative fine in the amount of from UAH 1.7 to 3.4 thousand will be imposed on the individual-entrepreneur and officials of the legal entity (director and chief accountant). Actions committed by a person, who in the course of the year was subjected to administrative penalties for the same violation, entail the fine imposing from UAH 8.5 to 17 thousand.
The State Fiscal Service of Ukraine in its letter “On the representation of specifying a calculations” of 12.12.16, № 39533/7/99-99-12-03-05-17 reported that legal entities submit a declaration for the tax on real estate in the period until 20 February. If, after the deadline for the declaration submission, the payer detected an error, then he has the right to correct it by submission of a declaration of the type “Specifying”. In order to correct the liabilities on tax on real estate, the taxpayer should submit two clarifying declarations separately for residential and non-residential real estate.
A taxpayer, who independently reveals the fact of understatement of tax liability of past tax periods, in accordance with sub-paragraph “a” of para.50.1 of the Tax Code of Ukraine (hereinafter – TCU), is obliged to pay the amount of underpayment and a fine.
The State Fiscal Service of Ukraine by its letter “Is the controlling authority entitled to conduct unscheduled inspections of the documentary on the issues that have been covered during the documentary planned field audits” of 23.12.16, № 27825/6/99-99-14-03-03-15 reminded when it was prohibited to the controlling authorities to conduct documentary unscheduled inspections, if the issues that to be the subject to such audit were covered during the previous audits of the payer.
These cases include situations when the bases for the inspections are:
- obtaining of tax information indicating the violation of the payer of the currency and other legislation, the control of compliance of which is entrusted to the regulatory authorities, if the payer has not provided an explanation and documentary confirmation on mandatory written request of the controlling authority within 10 working days of receipt of request (sub-para. 78.1 .1 of TCU);
- detected data inaccuracy contained in the tax declarations submitted by the taxpayer, if the taxpayer fails to provide an explanation and documentary confirmation on the written request of controlling authority, which indicates the detected data inaccuracy and appropriate declaration, within 10 working days from receipt of the request (paragraphs. 78.1.4 of TCU);
- if the taxpayer submitted the declaration, which stated to compensation from the budget of the value-added tax (hereinafter − VAT), if there are grounds for inspection and/or with a negative value for VAT over 100 thousand UAH (paragraphs 78.1. 8 of TCU).
- in case of receipt of the decision of the court (the investigating judge) on the appointment of verification or authority regulations engaged in the investigative activities, issued by them in accordance with the law (paras.78.1.11 of TCU).
The Ministry of Finance of Ukraine by its order “On Amendments in the tax declaration form for the rental payment” of 07.11.16, № 927 approved an updated form of Tax declaration for the rental payment.
The order of the Ministry of Finance, which approved a new form of the declaration, should enter into force from the date of official publication and scheduled for publication in the “Official Journal of Ukraine” for 30.12.16. If the entry of the document will be on 30.12.16, it should be given the report for the first time for January 2017.
The Ministry of Finance of Ukraine and the Ministry of Justice of Ukraine by its joint order “On approval of the provision of information of the State Fiscal Service of Ukraine on the requests of state executive service and private executors” of 13.12.16, № 3639/5/1085 defined the mechanism for obtaining the following information by the state executive service and private performers about:
- registration numbers of accounting cards of taxpayers − debtors – individuals or series (if any) and passport number, individuals debtors who by their religious beliefs refuse to accept the registration number of the taxpayer registration card and officially reported it to the appropriate controlling authority, and also have a stamp in their passport;
- existing accounts of debtors-legal entities and/or individual entrepreneurs, as well as accounts opened by the debtor-legal entity, through its subsidiaries, representative offices and other subdivisions;
- sources of income of individuals-debtors.
Such information should be provided by the tax authorities. For this purpose the both private and public performers should submit a request through an automated system of enforcement proceedings.
According to sec.5 of Art.18 of the Law of Ukraine “On Enforcement Proceedings” of 02.06.16, № 1404-VIII, the performer in the performance of the decisions has the right to immediate access to information about debtors and their property, revenues and resources, including confidential contained in state databases and registries, including electronic.
