The Verkhovna Rada of Ukraine adopted the draft Law “On Amendments to Annexes No. 1 and No 3 to the Law of Ukraine “On the State Budget of Ukraine for 2021” (on providing assistance to insured persons for the period of restrictive anti-epidemic measures to prevent spread pf respiratory disease COVID-19 caused by coronavirus SARS-CoV-2)”.
The purpose of the draft law is to provide social support to insured persons in connection with the introduction of restrictive anti-epidemic measures in some regions, which led to the temporary suspension of business entities, as well as incentives for businesses and employees to vaccinate.
The draft law proposes to increase by UAH 3,000,000 thousand revenues of the State Budget of Ukraine and send them to the Ministry of Economic Development, Trade and Agriculture to finance a new budget program “to assist the insured persons for the period of restrictive anti-epidemic measures introduced to prevent the spread of acute respiratory disease COVID-19 caused by the coronavirus SARS-CoV-2”.
The source of covering the state budget expenditures to finance this new budget program is proposed to determine additional revenues from taxes on corporate income tax and value added tax from goods (works, services) produced in Ukraine, taking into account budget reimbursement, rents for special use of forest resources and special use of water.
Appropriate changes are proposed to Art. 1 of the Law of Ukraine “On the State Budget of Ukraine for 2021” and Annex No. 1 “Revenues of the State Budget of Ukraine for 2021”, Annex No. 3 “Distribution of expenditures of the State Budget of Ukraine for 2021”, approved by law.
The draft law was registered under No. 6297.
The Cabinet of Ministers of Ukraine has made changes to the “Procedure for the functioning of the electronic health care system”, approved by the Resolution of April 25, 2018. By a relevant decision, the Cabinet of Ministers allowed the National Health Service of Ukraine (hereinafter –NHSU) and the State Tax Service of Ukraine to exchange information on data stored in the registers of both departments.
Now, when entering the registration number of the taxpayer’s account card in the electronic health care system, the NHSU can compare this information with the registers of the State Tax Service.
In this way, it will be possible to avoid any technical errors and duplication of personal data in electronic databases.
The Verkhovna Rada of Ukraine adopted draft law No. 2110, which will improve the state registers in Ukraine. This will help to optimize the existing registers, make them efficient, and the data in them – of high quality. This is the next step towards the introduction of a paperless regime.
The draft law will introduce the concept of ‘basic registers’. They will contain basic information about Ukrainians. For example, the Unified Demographic Register will be the primary source of information about a person containing age, name, identification documents. The registers will be connected by “Trembita”. It is not necessary to bring photocopies or certificates to various government agencies, as the exchange of information will take place in electronic form. Thus, the information will not be duplicated and differ about the same person in different state registers.
As a result, it will make public services efficient and automate them as much as possible.
In addition, the draft law introduces the concept of administrators and technical administrators of state registers. This will allow not to create a separate technical team for each state register, but to effectively use the resources available in the state of teams for the development and maintenance of registers. And also increase the efficiency of public funds.
The Verkhovna Rada of Ukraine adopted the Law “On Multimodal Transportation”. It defines the legal and organizational framework for multimodal transport and aims to create conditions for its development and improvement, encourage the use of cleaner modes of transport to protect the environment, prevent climate change and excessive energy consumption.
The law provides for the implementation of Council Directive 92/106 /EEC of December 7, 1992 laying down common rules for certain types of combined transport of goods between Member States (in accordance with Annex XXXII to Chapter 7 “Transport”, Section V “Economic and sectoral cooperation” of the Association Agreement between Ukraine and the EU).
The law introduces the concept of multimodal and combined cargo transportation, multimodal terminal, multimodal transportation document, operator and customer of multimodal transportation, definition of multimodal transportation agreement, its essential conditions, rights and obligations of its parties, basic principles of state regulation and state aid.
The law enshrines the right of multimodal transport participants to carry out cargo transportation on the basis of a single contract (multimodal transport contract) for all stages of transportation regardless of changes in modes of transport and to carry cargo under one transport document (multimodal transport document).
The law stipulates that when providing a multimodal transportation service, the responsibility of the multimodal transportation operator for the cargo to the customer of the service covers the period from the moment of acceptance of the cargo to the multimodal transportation and to the moment of delivery of the cargo.
In order to receive compensation for lost (damaged) cargo, the customer does not need to establish at what stage of transportation the damage or loss of cargo occurred or which of the carriers did not fulfill the obligation to deliver the goods on time.
The law provides for the establishment of the maximum amount of liability of the multimodal transportation operator in special borrowing rights in accordance with current international practice.
The draft law was registered under No. 4258.
The Cabinet of Ministers of Ukraine has approved the draft Law of Ukraine “On Amendments to the Code of Ukraine on Administrative Offenses to Strengthen Liability for Violation of Tax Procedure”.
The draft law proposes to increase the size of administrative fines for violation of the procedure for tax accounting, submission of tax reports, submission of audit reports. Relevant changes will be made to Art. 163 of the Code of Ukraine on Administrative Offenses.
For lack of tax accounting, violation of the procedure for filing tax returns (except for violations of the procedure for filing reports on SSC, PIT and ML), violation by managers and other officials of enterprises, institutions, organizations of the statutory procedure for tax accounting, including failure or late submission of tax reporting, audit reports, the submission of which is provided by the laws of Ukraine, it is proposed to fine in the amount of 100 to 150 non-taxable minimum incomes (hereinafter – NTMI) (1,700 UAH – 2,550 UAH). Now for these violations there is an administrative fine in the amount of 85 to 170 UAH.
For repeated violations during the year the fine will be in the amount of 150 to 250 NTMI (2,550 UAH – 4,250 UAH). Now for repeated violation the fine is in the amount of 170 UAH to 255 UAH.
At the same time, cases of administrative offenses related to the violation of the order of tax accounting will be considered by the tax authorities, and not by the courts. Thus, company officials do not have to pay court fees.
Failure to submit or late submission of joint reports on SSC, PIT and ML, as well as failure to submit reports on PIT, threatens an administrative fine for officials of enterprises, institutions and organizations, as well as for citizens-sole proprietors or self-employed individuals who work independently, in the amount of 2 to NTMI (from 17 to 51 UAH). With repeated offense during the year – from 51 to 85 UAH. In the same amount, an administrative fine is imposed for non-deduction or non-transfer to the budget of personal income tax when paying income to an individual. But the decisions in the case are made by the courts, so the violator will have to pay a court fee.
For violation of the procedure for accrual of SSC, as now, an administrative fine will be imposed on officials of enterprises, institutions and organizations, regardless of ownership, sole proprietors or self-employed, from 30 to 40 NTMI (510 UAH – 680 UAH).
If the Verkhovna Rada supports this draft, it will enter into force on the day following the day of its publication.
Unlike the fines provided by the Tax Code, quarantine does not exempt from paying administrative fines.
The Verkhovna Rada of Ukraine has adopted the Law “On Amendments to the Administrative and Criminal Legislation Concerning the performance of Duties of the Bureau of Economic Security of Ukraine”.
The law defines the legal basis for the creation and implementation of certain tasks of an independent state law enforcement body, which must perform the functions of analytical assessment, prevention, detection, termination, investigation and detection of criminal offenses under its jurisdiction.
The law establishes the following conceptual provisions:
In the Code of Administrative Offenses:
- the responsibility of employees of the Bureau of Economic Security of Ukraine (hereinafter –BES), who have special ranks, for administrative offenses under disciplinary statutes is determined;
- administrative liability is provided for illegal use of the name and signs belonging to BES.
The Criminal Code introduces liability for VAT fraud as a separate type of criminal offense, the investigation of which is within the competence of the BES.
Determining the specific composition of the crime of VAT fraud will provide an opportunity to effectively investigate the theft or misappropriation of budget funds in the form of VAT, and will avoid conflicts between law enforcement agencies in determining the composition of crimes under Art. 191 of the Criminal Code of Ukraine.
A number of other types of crimes have also been amended in connection with the establishment of the BES, ensuring its independence and the special procedure for investigating criminal offenses committed against its employees.
The draft law was registered under No. 3959-1.
The National Bank of Ukraine, by Resolution of the Management Board No. 116 of November 8, 2021, amended the Regulations on the Procedure for Execution by Banks of Documents for Transfers, Compulsory Write-Offs and Seizure of Funds in Foreign Currencies and Bank Metals.
The changes clarify the procedure for seizing bank metals.
Pursuant to the updated Chapter 6 of the Regulations, the bank is obliged to accept for execution a document on the seizure of all funds and bank metals for all types of currencies and bank metals with indicated amount/weight or without indicated amount/weight for each type of currency or bank metals, or with the indication of the total amount in the national currency for all types of currencies and bank metals, or funds and bank metals for a separate type of currencies and bank metals with the indication of the amount/weight or without the indication of the amount/weight.
The bank is obliged to accept for execution the document on seizure of bank metals for all types of bank metals with indication of weight for each type of bank metals or with indication of the total amount in national currency for all types of bank metals of the bank or bank metals for a particular type of bank metals, indicating their weight.
The Bank executes an arrest warrant for those current accounts of customers and only those types of currencies and/or bank metals that are specified in this document.
The Bank executes an arrest warrant in respect of those correspondent accounts of banks in bank metals and only those types of bank metals that are specified in this document.
The Bank records the seizure document on the relevant off-balance sheet account and seizes funds in foreign currency or bank metals on the client’s current account in the amount/weight specified in the seizure document and continues to conduct transactions on the client’s current account within the amount/weight exceeding the amount/weight of seizure, if the bank receives a seizure document indicating the type of currency or bank metal, funds or bank metals which are enough on the client’s current account to execute this document.
The Bank records the seizure document on the relevant off-balance sheet account and seizes bank metals on the bank’s correspondent account in the amount specified in the seizure document, and continues to carry out transactions on the bank’s correspondent account within the amount exceeding the seizure amount, if the bank receives an arrest document for the type of bank metal that is sufficient on the bank’s correspondent account to execute this document.
Resolution No. 116 entered into force on November 11, 2021.
