Consequences of the cyber-attack: the Ministry of Finance initiates amendments to the Tax Code

7/4/17

The Ministry of Finance has initiated amendments to the Tax Code making it possible to waive fines against taxpayers for the delayed registration of their tax bills due to the recent cyber-attack

On July 4, the Cabinet of Ministers approved the draft law “On Amendments to the Tax Code of Ukraine Regarding the Registration of Tax Bills and/or Corrective Calculations for Tax Bills in the United Tax Bills Register”.

What’s it about?

One of the consequences of the recent cyber-attack (intervention of unauthorized parties into the computer networks in Ukraine) referred to discrepancies in the registration of some of the tax bills issued in the period from June 1 till June 15.

Delays in the registration of tax bills are subject to fines. Obviously, taxpayers can’t be blamed for delays resulting from the cyber-attack. Unfortunately, the Tax Code does not waive fines in such cases.

That was the reason why the Ministry of Finance and the State Fiscal Service jointly prepared draft amendments to the Tax Code making it possible to waive fines for the delayed registration of tax bills issued in the period from June 1 till June 15 which will be registered by July 15, 2017.

Today, this draft law has been approved by the Cabinet of Ministers, the next step is to submit it to the Parliament.

What’s the benefit?

If adopted by the Parliament, the draft law will exempt taxpayers who faced problems with the registration of their tax bills due to the cyber-attack (force majeure) from the fines for the delayed registration and/or corrective calculations for tax bills in the United Tax Bills Register, if they submit them by July 15, 2017.

In this situation, the Parliament must be interested to minimize the negative impact of the cyber-attack on business, hence the Ministry of Finance expects the draft law to be adopted before the summer vacation of the Parliament.

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