Consequences of the cyber-attack: solutions for the registration of tax bills

7/3/17

The recent cyber-attack affected business severely: many companies were confronted with problems registering their tax bills issued in the period from June 1 till June 15. Delays in the registration of tax bills are subject to fines, but it is obvious that imposing them on businesses would be an extremely unfair step.

Unfortunately, the Tax Code does not release taxpayers from liability in such cases. That is why we are now preparing amendments to the Tax Code to change this situation as fast as possible. For the time being, we recommend taxpayers to make use of the valid legal ways including article 101 of the Tax Code.

Article 101 of the Tax Code stipulates a mechanism for the write-off of uncollectable tax debt according to the decision of the head or deputy head (entitled representatives) of a tax authority. The definition of tax debt also covers debts resulting from force majeure. According to the current legislation, force majeure must be confirmed by the Ukrainian Chamber of Commerce and Industry.

That is why we recommend to approach the UCCI to confirm force majeure as well as the Cyber Police to register a criminal proceeding. This is an effective mechanism which will allow our companies to avoid unfair sanctions. The Ministry of Finance is doing its utmost to protect the interests and development of business in Ukraine.

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