Suspension of risky tax bills: current issues and establishment of a working group


On July 20, 2017, the Ministry of Finance and the SFS hosted the round table “System for the suspension of the registration of tax bills: issues and solutions”. The round table took place at the press center “Liga Business Inform”.

The system allowing to suspend the registration of risky tax bills is an important element in the measures aimed to tackle tax fraud. The automated VAT refund system for business can only work properly, if billion-heavy fraud schemes are prevented and prosecuted effectively. The goal of the round table was to discuss the existing problems and possible solutions. The round table was also attended by experts and representatives of the business community.

The Ministry of Finance and the SFS are now working with as much additional capacity as possible to:
• speed up the check of process cards allowing diligent tax payers to avoid the suspension of the tax bill registration in the future;
• accelerate the work of SFS commissions which examine suspended tax bills and make a final decision on them;
• increase the capacity of the electronic taxpayer office through relevant IT solutions and by engaging additional personnel recourses;
• elaborate solutions which allow to improve the algorithms and criteria for the suspension of risky tax bills;
• improve the communication of instructions for the correct preparation of the documents required to resume the registration of tax bills.

State secretary of the Ministry of Finance Yevgeniy Kapinus said: “Can we really say that the automated VAT refund register does not need an option for the suspension of risky tax bills? Such a system is necessary. Now we see that this system is already being tested to find and misuse its weak points. We must reach the quality of the system where all attempts to “cheat” it make no sense for potential abusers. We are now working to improve the legal basis and the algorithms. Many business associations support the implementation of this system as much as the electronic VAT refund.”

The participants of the round table agreed to set up a permanent working group at the Ministry of Finance whose experts shall represent the view of entrepreneurs who are confronted with various issues, find solutions for acute problems as well as adjust and elaborate optimal solutions for the system itself. The working group shall include representatives of the Ministry of Finance, SFS, specialists in taxation and accounting as well as representatives of business associations. The working group will be operating at the Ministry of Finance and communicating its results in a dedicated Facebook group. The details will follow.

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