The payer discovered an error made in the tax report, submitted a long time ago. Whether it can be corrected without consequences and whether it is affected by the martial law in the country, read further.
Self-correction of errors
According to the first paragraph of item 49.2 of the Tax Code of Ukraine (hereinafter – the Tax Code), the taxpayer is obliged to submit tax returns for each reporting period established by the Tax Code, in which objects of taxation arise, or if there are indicators that are subject to declaration, in accordance with the requirements of the Tax Code for each separate tax paid. This paragraph applies to all taxpayers, including taxpayers who are on the simplified tax accounting and reporting system.
The tax declaration is submitted for the reporting period within the time limits established by the the Tax Code to the controlling body in which the taxpayer is registered (item 49.1 of the Tax Code).
According to para. 1 and 2 of item 50.1 of the Tax Code, if in future tax periods (taking into account the statute of limitations specified in Article 102 of the Tax Code) the taxpayer independently (including through the results of an electronic verification) discovers errors contained in the previously submitted tax declaration (except restrictions specified in Article 50 of the Tax Code), such a taxpayer is obliged to send a clarifying calculation to such a tax declaration in the form of a clarifying calculation valid at the time of submission.
The taxpayer has the right not to submit such a calculation, if the corresponding specified indicators are indicated in the tax return for any subsequent tax period, during which such errors were independently detected (including as a result of electronic verification).
Paragraphs 1 and 2 of item 102.1 of the Tax Code determine that the controlling body, except for the cases specified in item 102.2 of the Tax Code, has the right to conduct an audit and independently determine the amount of the taxpayer's monetary obligations in the cases defined by the Tax Code, no later than the end of 1095 days (2555 day - in the event of a verification of the transaction in accordance with Articles 39 and 392 of the Tax Code), which occurs after the last day of the deadline for submitting a tax declaration, a report on the use of income (profits) of a non-profit organization, defined in item 133.4 of the Tax Code, and/or by the deadline for payment of monetary obligations calculated by the controlling body, and if such a tax declaration was submitted later, by the date of its actual submission.
If within the specified period the controlling body does not determine the amount of monetary obligations, the taxpayer is considered free from such monetary obligation (including from the accrued penalty), and the dispute regarding such declaration and/or tax notice is not subject to consideration in administrative or judicial of order
Limitation periods
In the event that the taxpayer submits a clarification calculation to the tax declaration, the controlling body has the right to determine the amount of tax liabilities within the limits of the submitted clarifications according to such tax declaration within 1095 days (2555 days - in the case of an inspection in accordance with Articles 39 and 392 of the Tax Code) from the date of submission of the clarifying calculation to such declaration.
Item 522 section 10 chapter XX "Transitional Provisions" of the Tax Code is suspended for the period of martial law, state of emergency in accordance with Law of Ukraine No. 2120-IX of March 15, 2022 "On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine regarding the Validity of Norms during the Period of Martial Law".
At the same time, item 69 section 10 chapter XX "Transitional provisions" of the Tax Code established that temporarily, for the period until the termination or abolition of martial law on the territory of Ukraine, introduced by Decree of the President of Ukraine "On the Introduction of Martial Law in Ukraine" No. 64/2022 of February 24, 2022, approved by Law of Ukraine "On Approval of the Decree of the President of Ukraine "On the Introduction of Martial Law in Ukraine" No. 2102-IX of February 24, 2022, the payment of taxes and fees is carried out taking into account the features specified in item 69 of section10 chapter XX "Transitional Provisions" of the Tax Code.
Thus, in accordance with point 69.9 item 69 section 10 chapter XX "Transitional Provisions" of the Tax Code temporarily, until August 1, 2023, for taxpayers and controlling bodies, the passage of time limits determined by tax legislation and other legislation, the control of compliance of which is entrusted to controlling bodies, is stopped for taxpayers and controlling bodies, except for the cases provided for in point 69.9 item 69 section 10 chapter XX "Transitional Provisions" of the Tax Code.
Therefore, in the case of self-correction of errors made by the payer in the previously submitted reporting (including clarifying), the established limitation period begins:
- from the day following the day of the deadline for submission of the reporting tax declaration, the indicators of which are specified, in the case of its timely submission within the terms determined by the Tax Code;
- from the day following the day of the actual submission of the reporting tax declaration, the indicators of which are specified, in the case of its submission after the deadline set by the Tax Code.
At the same time, the statute of limitations for self-correction of errors made by the payer in the previously submitted reporting is extended for the period of its suspension from March 18, 2020 to July 31, 2023 (inclusive), since the statute of limitations has been resumed since August 1, 2023.
