Taxes
VAT
The Ministry of Revenue and Duties of Ukraine in its letter of 18.06.2014, № 14357/7/99-99-19-05-01-17 reported that supply and import operations of medicines and medical supplies to Ukraine are subject to VAT at 7 % and 20%.
At a rate of 7% are taxed:
- the medicines, which are licensed to produce and use in Ukraine, and included in the State Register of Medicinal Products. State registration of medicinal products or immunological medicines should be confirmed by the relevant registration certificate;
- the medical devices according to the list, which is approved by the Cabinet of Ministers of Ukraine of 23.04.2014, № 118;
- the medicines and medical devices are approved to use within clinical trials. The reason is the existence of appropriate authorization of the Ministry of Health to lead the clinical trials.
At a rate of 20% are taxed:
- medicines, which are not registered in Ukraine, and imported according to the Order of the Ministry of Health of 26.04.2011, № 237, as well as those which are not authorized to lead the clinical trials. The reason for their admission to Ukraine is the letter of notification, issued by the Ministry of Health;
- the medical devices that are not included in the list, which is approved by the Resolution of the Cabinet of 23.04.2014, № 118.
PIT
The Ministry of Revenue and Duties of Ukraine in its explanation of 07.06.2014 reported the following.
The total taxable income of the taxpayer does not include monetary funds or cost of the property (services) which are provided as an aid for the treatment and medical care of the payer at the expense of the a charitable organization with the appropriate supporting documents.
In particular, such supporting documents could be:
- the documents confirming the need for treatment and medical care (health condition and characteristics of illness, injury, poisoning, pathological state of the taxpayer);
- the documents of the delivery of health services, which identify the service provider and the taxpayer to whom they are provided;
- the volume and cost of such services: contracts, invoices and applications for payment, acts of services, other necessary documents depending on the required treatment or medical care, disease and its condition.
Thus, these funds are not subject to PIT.
Mobilization
The Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the improvement of the defense and mobilization issues during mobilization” of 05.20.14, № 1275-VII. was signed by the Acting President of Ukraine.
The law came into force on June 8, 2014. The number of amendments to the Legislative Acts of Ukraine has been provided by the Law.
In particular, these are provided for by the document:
- the employees’ position and workplace are retained for those who have been called up for military service during mobilization, for the special period, but not more than one year. The average wages are compensated from the budget (financed from the budget), regardless of subordination and form of ownership of the company, institution or organization where they have been working at the time of the call up;
- the increasing of liability for violation of mobilization training Law and mobilization. The violations entail a fine of 10 to 30 of non-taxable minimums (for citizens) and of 30 to 100 n.m. (for officers) now;
- the exemption from liability of assess, payment and tax reporting on individual income tax as well as liability of assess, payment and tax reporting on self-employed unified tax, who have been called up for military service during mobilization or involved in performance of mobilization duties. These exemptions are related to those self-employed, who have been involved in performance of mobilization duties ex officio, which are provided for by war establishment during special period determined by the Law of Ukraine “On mobilization preparation and mobilization” of 21.10.93, № 3543-XII;
- the granting of preemptive rights to military personnel, who have been called up for military service during mobilization, the special period, to the making of a contract for military service after its completion;
- the military personnel exemption from the interest rates charging of credit events, the penalty and the default interest remission (from the beginning to the end of the special period, and reservists and the military personnel – from the call up moment during the mobilization to the end of the special period);
- the study reinstatement after the end of study leave without charging for interrupted and paid term of apprenticeship of the military personnel – students;
- the suspension of regulatory legal acts which provides for downsizing, recruitment restriction or financing of the Armed Forces of Ukraine and other military formations or special purpose law enforcement authorities;
- the confiscation of transport vehicles from legal entities and individuals for State requirements during mobilization. The volume of transport vehicles on types and brands that are planned to be involved during mobilization for enterprises and all forms ownership organizations are subjects to Mobilization Plan of Ukraine approval by local public administrations on military commissariat submission. And their return to the owner is made during 30 calendar days since the date of demobilization announcement;
The President of Ukraine signed the Law of Ukraine “On Amendments to the Law of Ukraine “On Social and Legal Protection of Military and their families” № 1316-VII. The amendments provide that during the active duty service military commitment in the special period, which is announced according to the Law “On Defense of Ukraine”, it is entered to the service benefit, seniority, period of service in a speciality, as well as to the public service period on concessional terms in the order which is determined by the Cabinet of Ministers of Ukraine.
The members of the military families during the active duty service commitment in the special period, which is announced according to the law “On Defense of Ukraine”, the military pay, in case of impossibility to receive it by the military personnel during the military operation, is guaranteed.
Control and Responsibility
Acting the President of Ukraine signed the Law 'On amendments to Certain Legislative Acts of Ukraine in the sphere of the state anti-corruption policy concerning the implementation of EU Action Plan for the liberalization of visa regime for Ukraine' of 13.05.2014, № 1261-VII.
The penalty of perjury in the property declaration in form of a fine of 2550 to 5100 UAH is provided by the document. It is applied to persons who are required to file Transparency Return according to the 1st paragraph of Article 12 of the Law of Ukraine “On Principles of Prevention and Anti-Corruption Enforcement”.
In addition, the responsibility for the bribery of officials is enhanced. In particular, the bribery of the enterprises’ employee, organization or institution is punishable by a fine of 1700 to 4250 UAH, or correctional tasks up to one year, or imprisonment for the same term with the special confiscation.
Also, if the undue advantage was not obtained or it was impossible to determine its size, depending on the degree of criminal act which was committed by the authorized person of the legal entity, the court fined at the following rates:
for crime of little gravity– of 85 to 170.000 UAH;
for crime of average gravity – of 170 to 340.000 UAH;
for grievous crime – of 340 to 850.000 UAH;
for extremely grievous crime - of 850 to 1.275.000 UAH.
The Verkhovna Rada of Ukraine passed the Law of Ukraine 'On Amendments to Certain Legislative Acts of Ukraine concerning the parking of vehicles' of 29.05.14, № 1283-VII, which has been signed by the President.
The administrative liability for nonpayment of the service fee of using of the toll parking lots by the car driver is established by the Document. The amount of the fine will rise from 136 to 204 UAH. The protocols of such administrative violations should be made by public officials, authorized to conduct such actions by the executive committees of town and city councils or local state administration. The documents should be considered by the administrative commissions attached to executive authorities of village, town and city councils. The parking lot equipments with the parking automat or automatic entry and exit terminals are the essential prerequisite for the imposition of a fine. The business officials, who hold the parking lots, will face the fines from 510 to 640 UAH unless the technical means for parking charge. The right to impose the fines will have the State Architectural and Construction Inspectorate. The drivers, who have no appropriate benefits, will face the administrative fines at a rate of 255 to 306 UAH in case of parking the car in the places of free of charge parking.
It is to be recalled that the Ministry of Revenue has approved a new tax return form of duties for transport vehicles parking lots.
The Verkhovna Rada of Ukraine exempted the agricultural machinery from mandatory technical inspection by the Law of Ukraine “On Amendments to Certain Laws of Ukraine due to providing of safe use of agricultural machinery” of 03.06.14, № 1303-VII. The law has been signed by the President. However, the amenability has been escalated for non-compliance with legal requirements of agriculture inspectors to remove violations of regulatory acts on the use of machinery and regulations on health and safety during their operation or hindering their activities (Article 188-27 of the Code of Ukraine on Administrative Offences). Henceforth, the fine at a rate of 85 to 170 UAH is for citizen, and for officials is at a rate of 170 to 255 UAH.
It should be reminded that the tractors, self-propelled chassis, propelled agricultural, road-building and reclamative engineering, machinery, equipment, technical equipment, technology complexes and its lines which are used in agriculture, food and processing industries for growing, harvesting, storage and processing of agricultural products, as well as for the provision of technical services are referred to such equipment.
The Cabinet of Ministers of Ukraine approved by the Resolution of 06.18.2014, № 194 the amendments to the Procedure for determining the manufacturers and purchasers of alcohol and its turnover control. It is established by the specified amendments that for obtaining the pure alcohol the purchaser should provide to the supplier:
- purchaser’s power of attorney in the prescribed form (in the case of the obtaining the pure alcohol by a representative of the purchaser from the supplier);
- payment document confirming payment for pure alcohol;
- payment document confirming the payment of excise tax or the fax anticipation bill on the amount of tax, accepted for registration in the State Tax Service, charged on the volume of pure alcohol, if it is provided by the Tax Code of Ukraine.
It is prohibited to sell the pure alcohol without specified documents.
Also, certain documents have been abolished by the Cabinet, the competent authorities controlled the turnover of alcohol with these documents. In particular, it is referred to:
- alcoholic beverages and tobacco STS quota, which has been sent to the Department of controls over the production and alcohol turnover;
- alcohol sell order.
In addition, the provision, which allowed to contract for the alcohol supply during this year, has been abolished. Accordingly, the purchase up to 1 October of the year, which is preceding the scheduled, should make the contract with the suppliers for the supply of alcohol.
The Ministry of Health of Ukraine made a number of amendments to the procedure for licensing of medicinal product manufacturers and traders by the order “On Approval of Amendments to the Procedure for Control over observance of License terms of the business of production of medicines, wholesale and retail of medicines” of 30.04.14, № 295.
For example, if the licensee removes the critical violations during the audit and confirms it documentary, so his license should remain in force. Also, the licensing authority henceforward is obliged to consider the documents about the removing of violations according to the audit during 30 calendar days of the receiving date from the licensee.
Accounting and Reporting
The Ministry of Finance of Ukraine approved as amended the Accounting procedure for taxes and dues payers by the order of 22.04.2014, № 462.
Therefore, among others, the following forms of registration documents are updated:
- tax payers registration certificate on form № 4-OПП;
- tax payers de-registration certificate on form № 12-OПП;
- statement for legal entities and their economically autonomous subdivisions on form №1 -OПП;
- statement for registration of permanent establishment of a nonresident in Ukraine as a taxpayer on the advance corporation tax on form № 1- РПП);
- registration statement for self-employed persons on form № 5-OПП);
- statement for the liquidation or reorganization of the taxpayer on form № 8-ОПП);
- taxes and dues liabilities absence certificate on form № 20-OПП).
Additionally, it is established in the preamble of the order that the re-regestration of the Crimean taxpayers is accomplished by taking into consideration the following:
1) receiving the statements and documents from the Crimean taxpayers, as well as their registration is accomplished no later than the next business day since the day of receipt of information from the Unified State Register or the statements of taxpayers;
2) the taxpayers, who changed the location/place of residence before the entry into force of the order and were not registered at the new location, during two days after the entry into force of this Order the corresponded controlling authorities register them.
The Ministry of Revenue and Duties of Ukraine in its letter of 08.05.2014, № 4151/10/26-15-11-01-06 considered the issues regarding the right to the expenses and the tax credit in the absence of CMR.
In reference to the involving in the cost of goods (works, services) the transportation services, the tax specialists note that the enterprise which has paid for the cargo transportation services to be included in the income tax expense, should have duly executed primary transport documentation which acknowledges the receipt of the cargoes transportation services.
In case of absence of primary transport documentation which acknowledges the receipt of the cargoes transportation services by road transport including CMR note, the taxpayer has no right to involve such services in the cost of purchased (made) and realized goods, executed services, service rendered.
Concerning the involving in the tax credit of VAT amounts which are reflected in tax invoices in the absence of CMR, the Ministry of Revenues responded as follows.
The VAT amounts which is paid (invoiced) due to purchasing of goods/services which are not confirmed by tax invoices (or confirmed by tax invoices, executed with violation of requirements of Art. 201 of the Tax Code of Ukraine), or not confirmed by customs declarations, other documents which are provided by par. 201.11 of the Tax Code of Ukraine, are not relevant to tax credit.
Therefore, the absence of CMR with the duly executed tax invoice can not affect on the tax credit of the taxpayer.
The Ministry of Revenue and Duties of Ukraine to specified question in boxes 2 and 3 of Table 1 of Application 1 (D1) to the VAT tax declaration in case of return of goods by VAT defaulter explained the following.
Supplier – VAT payer in case of goods/ services return to him by a person who at the date of purchase of goods was not the taxpayer, had a right to reduce previous tax liabilities for VAT subject to the returning of previous delivered goods to his possession and provision for the recipient - VAT defaulter of full monetary compensation of their value.
Provided that adjustment accounts of tax liabilities through the returning of goods by VAT defaulter such adjustment is reflected in the line 8.1 of section 1 of the VAT declaration and in Application 1 (D1) to the declaration.
All the columns of Table 1 of Section I should be filled in case of filling out the Application 1 (D1), taking into account special aspects of VAT invoice details filling and VAT invoice adjustments calculation.
In particular, in case of goods/services delivering to VAT defaulter the expression “Tax defaulter” is indicated in the field “Person (taxpayer) – purchaser” of VAT invoice and VAT invoice adjustments calculation (in case of goods return).
Therefore, the expression “Tax defaulter” should be also noted in column 2 of Table 1 of Application 1 (D1). Then in column 3 of this table is indicated the conditional Individual Taxpayer Number “400000000000”.
The Ministry of Revenue and Duties of Ukraine to the question of how to correct an error in Application 2 (D2) to VAT tax declaration if the columns 2 and 3 had been filled incorrectly by a payer, and the final line “Total” had been filled correctly answered the following.
If the errors in columns 2 and 3 of Application 2 (D2) had no effect on indicators of the VAT declaration, it was possible to correct them by providing clarifying calculation. Such calculations should be attached to Application 2 (D2) of VAT declaration with the note of “Clarify”.
The adjustment is made by the correction, namely the posting error in Application 2 (D2) is indicated with a minus sign (viz. reversed) and entered the correct item and the blank is reflected (reporting in hard copy) in the final line “Total” or it is not to be filled (reporting in electronic form).
Thus filling out the clarifying calculation:
- the VAT declaration indicators are carried forward in box 4, the Application 2 (2D) is clarified to it.
- all relevant declaration indicators including corrected errors (in this case they are equal to box 4 indicators) are carried forward in box 5, and
- the blank is reflected (reporting in hard copy) in box 6 or it is not to be filled (reporting in electronic form).
The Ministry of Finance of Ukraine in partnership with the Ministry of Justice approved the Procedure for exercising of logical and arithmetic control of Property Declaration. The corresponding Order of 20.05.2014, № 586/784/5 comes into force after its official publication.
The Procedure determines the exercising of authorized units of logical and arithmetic control of property declaration as well as the related package of measures which are implemented by its results.
The logical and arithmetic control is for establishment of an arithmetic truth and a logical correspondence of the declared data together and is implemented during thirty days from the date of filing the declaration.
The control is carried out in three stages and it is regarded as implemented after any of the final stages.
According to the State Statistics Committee, the rate of the consumer price index (inflation) was 103.8% in May.
The Ministry of Revenues and Duties of Ukraine in its letter of 01.04.2014 № 414/3/99-99-10-04-02-10 has reported that the power to sign the tax invoice should be confirmed by the Order.
The list of people, who are entitled to authorize (to sign the primary documents) for business operations, is approved by the head of the enterprise.
All copies of the tax invoice are signed by the person, who is authorized to delivery of goods / services, and sealed by the taxpayer-salesman. The tax invoice is not signed by a purchaser of goods / services and is not sealed with his seal.
Thus, the list of persons, who are authorized on behalf of the enterprise to carry out business operations (delivery of goods and services), as well as to sign the primary documents and tax invoices, is approved by the order of the head of the enterprise. The Order is notified to the employees under the signature.
The Ministry of Revenues and Duties of Ukraine in its letter of 04.02.2014, № 5902/6/99-99-19-03-02-15 informed the following. In case of early termination of the contract of long term life assurance the employer-insurer should include the amount of insurance payments to the revenues, classified as expenses. In addition, the insurer should charge the default interest rate in the amount of 120% NBU policy rate, which was effective at the date of such incomes. An important point: the redemption amount or part of it, returned to the insured, is not included to the income.
The difference between the amount of insurance payments, which is paid by the insured, and the redemption amount, which is paid to such insured, and should be the subject to the making parts of the incomes from the insurance business by the insurer, which is taxable at a rate of 3%. In the tax declaration on income (profit) of the insurer, the amount of income tax on insurance business at a rate of 3% is charged and reflected in the Declaration line 02.
The activities income on the implementation long-term contracts of life and pension insurance within the non-state pension schemes (at a rate of 0 per cent) is reflected in line 22 of the Declaration.
The Ministry of Revenue and Duties of Ukraine by its letter of 19.06.14, № 14544/7/99-99-19-03-02-17 “On rescheduling” has extended the deadline for filing tax returns of May 2014 to 30 June 2014 inclusive for taxpayers of Donetsk and Luhansk regions.
Thus, the penalties should not be applied during the deadline extension period for filling tax returns.
The Ministry of Revenue and Duties of Ukraine proposed the way, which provides an opportunity for the Crimean taxpayers to re-register their own businesses on the mainland and pay taxes according to the legislation of Ukraine by its explanation “Special aspects of the re-registration of the taxpayers in terms of destabilization of the situation in country” of 19.06.14.
The legal entity or individual-entrepreneur should address to Kyiv or Kyiv region State Registry to register a change of location area or place of residence. The Ministry of Revenue and Duties of Ukraine registers the payer at a new location area getting information from the Unified State Register.
Re-registration of the change of the taxpayer location area, who are registered in Donetsk and Luhansk regions, is carried out in normal mode according to the Articles 29, 45 of the Law of Ukraine “On state registration of legal entities and individuals - entrepreneurs' of 15.05.03, № 755-IV.
The Ministry of Revenue has reminded about the possibility of reporting by mail or electronically. Filling the tax declaration electronically it is necessary to follow the Instruction of tax documents preparation and submission in electronic form by means of telecommunication, approved by the STS of 10.04.08, № 233.
Labour and Salaries
The Pension Fund of Ukraine in its letter of 05.16.2014, № 13070/05-10 explained how to reflect the amount of the average wages for period of training assemblies and mobilization in the reporting of USC.
The payment of the average wage to the available for military service, including reservists who called up for meetings is carried out by enterprises, institutions and organizations, where the called up for meetings citizens work.
During the mobilization period, a special period, but not more than one year, the employee retains his work place and the average wage. Therefore, the labor relations with such employees are not suspended during this period.
If mobilization period and the employee being on military trainings are within one month, the average wage, which is accrued during that time, is reflected together with the wage for such reporting month.
If the mobilization period is beyond one calendar month, the amount of the average wage for the following calendar month is reflected separately.
The legislation does not provide the special type code of charges to reflect the average wage in Table 6 of Application 4 to the report of USC.
The right of the Insured is violated if the “transitional” amounts of the average wage are not reflected in separate lines for the mentioned above persons.
The Ministry of Finance of Ukraine in its letter of 08.01.2014, № 31-07250-06-29/19 considered the issue of return of unused funds for business trip withdrawn from a corporate card.
The balance of unused funds should be returned to the enterprise, after the employee return from the business trip. If the business trip was abroad then the cash return should be in the same currency in which it had been received.
However, as the Ministry of Finance explained, if the funds were taken from a corporate payment card during business trip abroad, the unused cash could be returned to the cash register of the enterprise in the state national currency, which had been sent to the employee, or in a freely convertible currency.
The Pension Fund of Ukraine approved an average wage (income) in average per one insured person in April 2014. The rate is 3097 UAH 76 kop. It should be applied in determining of the coefficient of wages in granting of the pensions.
Financial Services Market
All previous restrictions were approved by The National Bank of Ukraine by its Resolution of 30.05.2014, № 328. Individuals could purchase currency equivalent not more than 15 thousand UAH per day. The same amount restriction has been established for money transfers without opening an account and for withdrawal of public foreign currency deposits.
At the same time, the Order № 328 imposed a new restriction on the withdrawal of funds of the UAH accounts.
Thus, the banks are required to restrict issuance of cash in UAH from the current (including card) and deposit accounts of clients over the cash desk and ATMs, up to 150 000 UAH per day per customer. These requirements do not apply to issuing of funds:
- for salaries, business travel expenses, pensions, study grants and other social and similar payments (except material aid);
- on current and deposit accounts, subject to their contribution in cash and up to the deposited cash amount.
The Resolution came into force from June 1 and will be in force up to September 1, 2014.
Public Procurement
The Ministry of Economic Development of Ukraine mentioned in its explanation of 23.05.2014 that entities who were clients due to the Law “On peculiarities of procurement in separate spheres of economic activity” pursued the procurement according to the value limits which were defined by the Law. In this respect, it was mentioned that the value limits were established by the law in general, that is the amount due to taxes and compulsory payments that the client actually planned to spend.
Besides, the authors explained who the clients due to the Procurement Law were. They are:
1) legal entities who conduct activities in any spheres which are defined in Art. 2 of the Law;
2) business entities that conduct activities in any spheres which are defined in Art. 2 of the Law, and conform at least to one of the following standards:
- share of the authorized capital of a business entity is over 50%;
- public authorities and local governments hold the majority of votes in the higher authority of the business entity or the right to appoint more than a half of the executive or supervisory board of the company;
- the existence of special or exclusive rights.
The Ministry of Economic Development of Ukraine in its letter of 30.04.2014 reminded that the Law of Ukraine “On public procurement” had entered into force since 20.04.2014.
To the amendments for simplification of procurement procedures the following could be included:
- the deadlines for providing suggestions competitive tendering (price proposals) are reduced as well as deadlines of making of the procurement contract;
- the value limit of the procurement procedure application increased to 300 000 UAH - price proposals request;
- the necessity for publication of information concerning the procurement in printed publications is abolished.
According to the Law all information about the procurement necessarily is made public on the web portal of the Authorized Body (tender.me.gov.ua);
- the opportunity providing information during the procurement procedure not only in written form but also in the form of an electronic document is arranged.
To create preconditions on prevention uncontrolled draft of funds and to avoid the corruption by provisions of the Law:
- the number of cases, which are not covered by the Law, are reduced;
- the list of grounds for the noncompetitive (negotiating) procedure is reduced;
- the public right to be present at disclosure of competitive tendering proposals is established as well as implementation of the fixation with the technical means;
- the norms of proposals rejection of a participant who is a related person with the member (s) of competitive tendering committee of a client are introduced;
- a new case of refusal to participate in tendering is introduced, if the participant during the three last years has been prosecuted for violations in the form of commitment anticompetitive concerted practices (conspiracy) concerning distortion of the results of bids (tendering);
- a provision regarding the right of a client to reject the participants proposals, which are registered in offshore zones, is introduced;
- publishing all the information on the implementation of public procurement procedures on the web portal of the Authorized Body is provided, starting from setting of annual plans.
Legal Precedents
The Superior Economic Court of Ukraine in its letter “On the Law of Ukraine “ On protection of rights and freedoms of citizens and legal regime for the temporarily occupied territory of Ukraine” of 15.05.14, № 01-06/615/14 has reported: the venue of the economic affairs has been changed due to the occupation of the Crimea. Now, instead of the Economic Court of Autonomous Republic of Crimea should consider the Economic Court of Kyiv region, instead of the Economic Court of Sevastopol – the Economic Court of Kyiv, and instead of Sevastopol Economic Court of Appeal - Kyiv Economic Court of Appeal.
The change of cases venue is applied to all categories cases (including bankruptcy), and at any stage of the proceedings.
The Superior Economic Court of Ukraine in its letter “On Certain Issues of Application of the jurisprudence of the Law of Ukraine “On protection of rights and freedoms of citizens and legal regime for the temporarily occupied territory of Ukraine” of 05.06.14, № 01-06/745/2014 has explained: the Economic Court of Kyiv region, Kyiv city and Kyiv Economic Court of Appeal are not entitled to demand the case files from the Crimean Economic Court to implement them for further consideration. Therefore, the plaintiffs should file new claims.
Thus SECU noted that the existence of such proceedings in the Crimean Economic Court does not prevent such assesses to the courts, and the legal acts adopted by them of 27.04.14, would not take into the account of resolution of disputes.
Other things
The bills prepared by the Ministry of Economic Development “On Standardization” and “On Metrology and Metrological Activity” have been promoted by the Verkhovna Rada of Ukraine in the second reading, the adoption of the bills propels the system of technical regulation to a totally new level.
The Law of Ukraine 'On Standardization' brings the national standardization system into the modern international and European requirements and trends. The law provides for the establishment of a single national standards body, the implementation of the principle of optional applying of standards, the simplification and optimization of development and adoption procedures of standards, etc.
The purpose of adopting of the draft Law of Ukraine 'On Metrology and Metrological activity' is the providing of the implementation of metrological activities in Ukraine on the basis of international and European requirements, the distinction between the regulatory, the supervisory and the economic functions in the sphere of metrology, the elimination of excessive regulatory pressure of business in the sphere of metrology, the establishment of state metrological inspection.
The Ministry of Revenue and Duties of Ukraine published the Generalize Tax Advice regarding the taxation of insurance compensation amounts which were paid to the beneficiary bank in case of insured accident with the subject of the pledge (the automobile) and forwarded to credit repayment by the bank (the Order of 02.06.2014, № 325).
Thus, according to the GTA in case of insured accident with the automobile, on the security of which the individual has obtained the credit at the bank, the insurance compensation is paid by the insurance company to such beneficiary bank, and these funds obtained on such automobile are forwarded by the bank to individual credit repayment. It is very important that the taxmen have concluded not to include the amount of such compensation in the total monthly (annual) taxable income of the individual - the borrower.
The Cabinet of Ministers of Ukraine has approved an order on the establishment of the State Fiscal Service (hereinafter – SFS) by the Resolution “On Establishment of the State Fiscal Service” of 21.05.14, № 160. As a central executive authority SFS is engaged in tax and customs policy, and its activities should be coordinated by the Cabinet. The new service de facto should work on the basis of the Ministry of Ukraine of Revenues and Duties.
The Cabinet of Ministers of Ukraine has raised the minimum wholesale and retail prices for certain types of alcoholic beverages by the Resolution “On amendments in the Annex to the Cabinet of Ministers of Ukraine of October 30, 2008 № 957” of 11.06.14, № 177.
Thus, the minimum price for 1 liter of 100% pure alcohol for manufacture of vodka and distillery products should be equal to 116, 35 UAH in wholesale trade and 174,5 UAH at retail. These prices are kept up till 31.07.14, and again starting the next day the rising up to 133 UAH and 199, 5 UAH respectively.
The retail prices for wine are also raised. The price is 20 UAH, and the sparkling wines - 33 UAH. It is to be recalled that the liability in the amount of 100% cost of received goods is established for the alcoholic beverages trade at below the minimum prices, as it is calculated on the basis of the minimum wholesale or retail price, but not less than 5000 UAH (Art.17 of the Law of Ukraine “On the State Regulation of the Production and Circulation of Ethyl, Cognac and Fruit Alcohol, alcoholic beverages and tobacco” of 19.12.95, № 481/95-VR).
The Ministry of Justice of Ukraine has specified the procedure of selling the mortgaged property by the Order “On Amendments to the Interim procedure for implementation of impounded property by electronic biddings” of 06.06.14, № 896/5. It is a reminder that the Ministry of Justice has established the experimental implementation of impounded property by means of electronic biddings. Henceforth the electronic biddings organizer should proclaim the news of bidding process at least in two local mass media (the location of the mortgage). Such news should be published not later than 15 days before the bidding. In particular, you could get to know the date and the time of electronic bidding, the description of mortgage, where it is possible to learn more about the conditions of the conduct for the bidding process from the news. The procedure of property storage that goes under the hammer in electronic biddings has been specified. Thus, the custodian may be a debtor, family member or other persons (including Bid organizer) defined in an open competition.
The debtor or the family member is a designated custodian of real estate, incomplete construction and other property that should not be transferred for storage due to objective reasons (tools, machinery, machines, equipment, etc.). They provide the property storage free of charge.
The Ministry of Economic Development and Trade of Ukraine in its letter of 20.09.2013, № 3502-06/33294-16 explains that smoking designated areas could not be outdoors because of the part (square) of the street is not included in the list of places and institutions where should be specifically designated areas, equipped with ventilation system or other means to remove tobacco smoke, and posted information on the prohibition of smoking “NO SMOKING!”.
In addition, the agency reminded that State Consumer Rights Protection Inspection applies the financial penalties to business entities regardless of the number of not designated areas and not properly equipped special places for smoking.
It is to be recalled that according to the anti-smoking Law, the tobacco smoking is prohibited (except in specially designated areas):
- in the rooms of the enterprises, institutions and organizations of all forms of ownership;
- in the areas of hotels and similar accommodation citizens;
- in a dormitory;
- in airports and train stations.
The Verkhovna Rada of Ukraine adopted the Law of Ukraine 'On Amendments to the laws of Ukraine on anti- terrorism' of 05.06.2014, № 1313-VII. The document came into force on 21 June 2014. The powers of the military due to the anti-terrorist operation are greatly extended by the Law. In particular, the enterprises, institutions and organizations, which are in the area of administrative-territorial units, partially or completely stop working at the request of managers of the anti-terrorist operation participants.
