Tuesday, August 16, 2016

Ukraine's Ministry of Finance engages public to improve its explanations on tax regulations

The Ministry of Finance invites business, public, experts and all interested persons to express their opinion as well as to provide real examples and ideas to make official explanations on tax regulations as effective as possible and to make life easier for taxpayers.

What is the problem?

Differences in the interpretation of the tax regulations cause numerous tax disputes between taxpayers and the State Fiscal Service. There is an acute need to settle disputed issues in the tax legislation, which is the purpose of the tax explanations.


Solution

In the end of July the Ministry of Finance launched the process of tax explanations aimed to solve the most rankling taxation issues for business. Presently, the Ministry of Finance is collecting information to analyze the tax explanations currently provided and to improve their effectiveness and quality as much as possible. That is why the Ministry of Finance is inviting the public to an open discussion.

Expected result

Tax explanations shall reduce differences in the interpretation of the tax regulations as well as manipulations by the State Fiscal Service and save costs and time for business needed to be invested in court disputes on taxation issues.

Proposals are welcome in regard to the following issues

1.     Form of the tax explanations and procedure for their preparation:
• How should the current tax explanations be improved?
• What is the most optimal was to structure and to present the tax explanations?
• What can be the way to evaluate the effectiveness of the current and future tax explanations?

2.     Issues for which tax explanations are currently not provided or issues which need improvement:
• Issues with references to the respective tax regulations;
• Comments on taxpayers who are affected by each of the above issues, what problems can arise due to the missing tax explanations;
• Proposals in tax explanations on how to solve the respective issues;
• Cases when the official tax advice was ignored by controlling authorities.



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