Tetyana Prokopchuk: Business Believes that the Priority is to Simplify the Administration of Taxes

The review is a response to the article Tax Reform – What’s On the Table written by Pavlo Kukhta, member of the Editorial Board of iMoRe

Author:

Tetyana Prokopchuk admits that the key claims from business on taxes, as provided for by current tax system, are related primarily to VAT, Corporate Income tax and Single social contribution. American Chamber of Commerce has developed the tangible proposals and action items aimed at improving tax administration. 

The key claims from business on taxes, as provided for by current tax system, are related primarily to VAT, Corporate Income tax and Single social contribution. Business believes that the priority is to simplify the administration of these taxes in accordance with the European principles, further introduce electronic services and reduce rates of single social contribution. Current taxation of SSC has been allowing to use decreasing coefficient in 2015 and 2016 does not take into account the interests of business, which still pays official salaries.

American Chamber of Commerce together with its Members – largest taxpayers operating in Ukraine – has developed the tangible proposals and action items aimed at improving tax administration. They should be implemented as follows:

  • It is necessary to provide automatic return of unduly paid amounts and to allow the enrollment of tax overpayment in the payment of other taxes;
  • improve the quality of tax consultations to obtain clearer responses on questions from business;
  • provide liability of the tax authorities for unreasonable decisions and reimbursement court expenses in case of a court decision in favor of the taxpayer, as well as consider introducing procedures for alternative dispute resolution;
  • ensure reformation of State Fiscal Service into an effective service provider with functions of verifications over compliance with tax legislation by all taxpayers;
  • establish electronic declaration of all taxes, provide stability and simplification of reporting forms and increase reporting periods;
  • optimize the structure of fiscal services as well as increase wages of fiscal authorities employees, in combination with monetary and non-monetary incentives.

This reform should ensure clear, transparent and predictable taxation – this is a strong expectation from the business community.

Tax Reform Week

Tax Reform – What’s On the Table (Pavlo Kukhta, member of the Editorial Board of iMoRe)

Open Letter to the Expert Community and the Ministry of Finance of Ukraine from the VoxUkraine Group of Economists

Pavlo Sebastianovich: Medium and Small Businesses Displaced From the Legal Field of High Tax Rates (Pavlo Sebastianovich, Civic Platform “Nova Kraina”)

Vladimir Dubrovskiy: 1-2% of GDP in Additional Revenues as a Result of a Crackdown on Simplified Taxation are Unrealistic Figures (Vladimir Dubrovskiy, RPR expert)

Robert Conrad: Tax Reform is not Simply Changing the Law (Robert Conrad, Duke University)

Anna Derevyanko: Cosmetic Changes will not Work for the Society (Anna Derevyanko, Executive Director, European Business Association)

Ukraine Needs a Radical but Sensible Tax Reform (Anders Åslund, Senior fellow at the Atlantic Council in Washington and author of the book “Ukraine: What Went Wrong and How to Fix It”)

Roman Zharko: Core Problem of the Ukrainian Tax System is Practice of Discretionary Use of Fiscal Mechanism to Reach the Established Revenue Targets (Roman Zharko, PhD, Tax Manager, Baker Tilly)

Tax Reform in Ukraine: How to Accomplish the Impossible (Vladimir Dubrovskiy, expert of the RPR group)

Tax Reform in the Light of Macroeconomic Stability: the NBU Perspective (Dmytro Sologub, Deputy Governor at National Bank of Ukraine, and Serhiy Nikolaichuk, Director of monetary policy and economic analysis department at NBU)

Macroeconomic Implications of the Tax Reform (Yuriy Gorodnichenko, UC Berkeley, co-founder of VoxUkraine)

Tax Reform in Georgia: Lessons for Ukraine (Olena Bilan, Chief economist at Dragon Capital, member of the Editorial Board of VoxUkraine)


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The author doesn`t work for, consult to, own shares in or receive funding from any company or organization that would benefit from this article, and have no relevant affiliations