On July 12, Minister of Finance Oleksandr Danyliuk attended a meeting with representatives of business which was chaired by Prime Minister Volodymyr Groysman.
Based on the results of the meeting, Oleksandr Danyliuk instructed the Head of the SFS to implement changes in the tax regulations which shall significantly reduce the number of criminal proceedings against business filed by the tax authorities.
Presently, the SFS initiates criminal proceedings even prior to presenting real proofs for violations made by companies. According to business-ombudsman Algirdas Shemeta, 1748 criminal cases were pursued against businessmen in 2015, only 55 of them were later sent to courts with formulated charges. This means that more than 1,500 companies had to suffer sanctions while the SFS was looking for several dozens of real felons only.
The instructions given by the Minister of Finance should solve this issue promptly. Now, all files should be sent to the tax police only upon completion of all administrative and court appealing procedures. This means that if a company does not agree with the SFS on its tax obligations and files a protest at the court, criminal proceedings can be started, only if the investigator finds real proofs for unlawful actions.
“If there is no evidence of a crime, no criminal proceedings are possible. We will handle this issue fast via a separate executive order. Our systemic and final decision here will be a comprehensive reform of the SFS and the liquidation of the tax police”, Oleksandr Danyliuk during the meeting.
This step would not only reduce the number of unauthorized criminal prosecutions against business, but should also reduce manipulations by the SFS in regard to the calculation of additional tax amounts.