What liability is provided for failure to pay a single advance payment based on the results of three quarters of 2016?
Liability for failure to pay a single advance payment based on the results of three quarters of 2016 is spelled out in para.38 of subsection 4 of sec. XX of the Tax Code of Ukraine (hereinafter − TCU): “If the taxpayer does not pay the agreed amount of advance payments of company income tax within the time limits prescribed by this Code, the taxpayer is liable to a fine in the amount specified in Article 123 of the Code”.
It would be logical to apply the liability under Art. 126 of TCU, but we should be guided by Art.123 of TCU in this situation, since the mentioned above para.38 of subsection 4 of sec. XX of TCU directly refers to it. The liability according to Art.123 is major in comparison with Art.126.
Therefore, it is imposed a fine of 25% of the amount for the first violation, but for the second violation within 1 095 days − 50% fine.
In addition, a penalty under Art.129 of TCU (under sub-para.129.1.1 of TCU) can threaten. In the case of individual accrual of the amount of the monetary obligation by the tax payer, the accrual of penalties begins after the expiry of 90 days following the last day of the deadline for payment of the monetary obligation, and ends in the day of tax liability (sub-para. “a” of sub-para.129.1.1, para.129.3 of TCU). It is accrued on the amount of tax debt at the rate of 120% of discount rate of the National Bank of Ukraine on the day of such a tax debt or on the day of its (its part) repayment, depending on which of the values of such rates is greater, for each calendar day of arrear in its payment (para.129.4 TCU).
Liability for failure to pay of advance payment
- a fine of 25% of the amount for the first violation;
- a fine of 50% for the second violation within 1 095 days;
- a penalty should be accrued in case of failure to pay of contribution within the terms. Its accruing begins after the expiry of 90 days following the last day of the deadline for payment of the monetary obligation, and ends on the date of its repayment. The penalty is accrued on the amount of the tax debt at the rate of 120% annual of discount rate of the National Bank for the day of such a tax debt or on the day of its (its part) repayment, depending on which of the values of such rates is greater, each calendar day of arrear in its payment.
