Quite contradictory Law of Ukraine “On Amendments to the Tax Code of Ukraine to Improve Tax Administration, Eliminate Technical and Logical Inconsistencies in Tax Legislation” No. 466-IX of January 16, 2020 (hereinafter – Law No. 466-IX) is largely aimed at tax administration. Let’s consider how the procedure for reviewing objections to the certificate of inspection has changed.
It is well known that, having received the tax audit report, the taxpayer has the right on the basis of paragraph 86.7 of Art. 86 of the Tax Code of Ukraine (hereinafter – the Tax Code) in case of disagreement with the conclusions of the inspection or the facts and data set out in the inspection report, submit objections and/or additional documents to the controlling body within 10 working days from the date of receipt of the report (certificate).
Such objections of taxpayers are currently considered by the committee of the controlling body on consideration of objections and explanations to inspection reports (committee on objections), which is a permanent collegial body of the controlling body. The composition of the committee and its procedure must be approved by an order of the head of the controlling body.
Consideration of inspection materials is carried out within 10 working days following the day of receipt of objections to the inspection report. During the review of the materials of the inspection, the committee on objections:
- establishes whether the taxpayer has committed a violation;
- considers the circumstances of the committed offenses, which are reflected in the inspection report, as well as established during the consideration of the written explanations provided by the taxpayer and their documentary confirmation;
- investigates the issue of the presence or absence of circumstances precluding guilt in committing an offense (except for offenses for which liability arises regardless of the presence of guilt), mitigate or release from liability;
- determines the amount of monetary obligations;
- investigates the issue of the need to conduct an inspection in the manner prescribed by paragraphs 78.1.5, item 78.1 of Art. 78 of the Tax Code (the taxpayer submits in the prescribed manner to the controlling body the objections to the inspection report in the event that the taxpayer in the objections refers to circumstances that were not investigated during the inspection, and their objective consideration is impossible without inspection. Such inspection is carried out only with regard to issues which became the subject of the appeal).
It is to be hoped that the committee on objections will be objective and impartial in its consideration of taxpayers' objections to the inspection report and the protection of their rights at this stage will finally be effective rather than formal.
