The Verkhovna Rada of Ukraine adopted the Law 'On amendments to some legislative acts of Ukraine in the sphere of the state anti-corruption policy concerning the implementation by EU action plan for the liberalization of visa regime for Ukraine' (draft law № 4556).
According to the explanatory note to the draft law the aim of the Law is the implementation of European Commission experts’ recommendations for improving the provisions of anti-corruption legislation provided within the negotiations on EU liberalization of visa regime for Ukraine.
It is offered to achieve this goal by amending some legislative acts.
In particular:
- the establishment of more stringent forms of punishment for corruption offenses for individuals as well as legal entities is provided;
- verification of the specified information in the declaration will be entrusted to the central executive authority that implements the state tax policy and the right of the authority to receive the information from financial institutions regarding the specified information in the declaration during the audit will be enshrined in the Law of Ukraine 'On Banks and Banking Activity'.
The Ministry of Revenue and Duties of Ukraine in its letter of 24.04.2014, № 6599/6/99-99-19-03-02-15 informed that the income tax payers can offset the income tax overpayment against the advance payment according to appropriate application which should be prepared in arbitrary form as de facto the overpayment would be recorded by the budget classification code for income tax instead of the advanced contributions.
The tax officers also reminded that the transfer funds direction could be indicated in the application:
- on the current account of the taxpayer in banking institution;
- for cancellation of liabilities (tax debt) in other payments;
- cash refund to the taxpayer by check in case of absence of a bank account.
The Ministry of Revenue and Duties of Ukraine in its letter of 07.04.2014, № 8078/7/99-99-17-03-01-17 informed about the establishment of regime which ensures the formation of notification on payment over audit the sum-at-charge of Unified Social Contribution (USC) by individuals-entrepreneurs (except single tax payer) and freelancers.
If the amount of USC, calculated in Appendix 5 (tables 1, 3), is less than the minimum insurance fee, responsible person of subdivisions of revenues and duties of individuals prepares and directs the notification on payment where calculated additional payment is indicated according to the activity results of calendar year.
Individuals-entrepreneurs (except single taxpayers) and freelancers pay extra sums to insurance fees due to notification on payment and provide the report to the Ministry of Revenue in accordance with Table 2 Appendix 6 during one calendar month after the implementation of additional payments.
The Ministry of Revenue and Duties of Ukraine in its letter of 11.04.2014, № 2259/Н/99-99-17-02-02-14 provided an explanation regarding the entrepreneur delegation of the authority to sign tax invoices to another person.
The proxyship is a legal relationship where one side (representative) is obliged or has the right to make a deal on behalf of another side it represents. According to p. 19.2 of the Tax Code of Ukraine representatives of the taxpayer are persons who have right to represent their legitimate interests and conduct of business related to the payment of taxes under the law or the power of attorney. Power of attorney issued by a taxpayer - individual for representation of his interests and business conducting related to the payment of taxes shall be certified in accordance with current legislation. According to Art.51 of the Civil Code of Ukraine the laws and regulations are applied to the entrepreneurial activities of individuals and regulate business activities of legal entities unless otherwise is provided by the law or follows from the content of relations.
Taking mentioned above into consideration, an individual that has notarized instruction due to representation of the taxpayer interests in tax authorities and implementation of the relevant transactions is an authorized person of the physical individual - entrepreneur and may sign a tax invoice.
The Ministry of Finance of Ukraine in its letter of 23.04.2014, № 31-05/60-10-10/9401 has focused on treasurers’ liability for violation of fiscal legislation in nonpayment.
The sanctions may be applied for violation of the fiscal legislation in groundless rejection to register or late registration of budgetary obligations and groundless rejection to make payment to the Treasury authorities.
According to Part 2 of Art. 123 of the Budget Code of Ukraine (hereinafter - BCU), the personal treasury heads liability is provided in case of violation of fiscal legislation and failure to comply with requirements concerning state treasury services and local budgets set by BCU.
However, norms subparagraph 1 paragraph 11 of the Resolution of the Cabinet Ministers of Ukraine 'On state saving funds and preventing budget losses' of 01.03.2014 № 65 subordination of payment is set for Treasury authorities.
In its turn, according to subparagraph 2 paragraph 11 of mentioned above Resolution, the treasurers have the right to repay credit debts of budget holders for capital expenditures only after confirmation of this debt size by State Financial Inspection.
The Ministry of Finance of Ukraine in its letter of 05.05.2014, № 31-07240-09-27/10518 reminded that according to p.2 the measures of saving funds confirmed by the Resolution of the Cabinet Ministers of Ukraine of 01.03.2014 № 65, it is provided temporary prohibition on the establishment of additional payments for discharge of temporarily absent employees’ duties.
At the same time, the Ministry of Finance agrees that currently discharge of temporarily absent employees’ duties is accompanied by great pressure on Deputy.
Therefore, according to the authors of the letter, the head of the institution may compensate extra duties establishing the wage premium at a higher rate for achievements at work or performance of particularly important work to the employee.
Also, the manager may increase the premium rate size to this substituent for the performance of temporarily absent employees’ duties. It should be noted that such compensation is possible only within the payroll budget.
The Ministry of Finance of Ukraine in its letter of 28.03.2014, № 31-08410-07-21/6647 explained how to classify fixed assets when their parts have a different lifetime.
If fixed asset consists of the parts with different useful lifetime, each of these parts may be recognized in the accounting report as a separate item of fixed-capital assets.
Useful lifetime is the expected period of time during which the noncurrent assets could be used by company or having applied (made) them the production volume (works, services) which is expected to be produced by the company.
The analytical accounting records of fixed assets by groups are carried out using the State Classifier of Ukraine ДК 013-97 “Classification of fixed assets”.
Defining a group, to which the item of fixed assets belongs to, its classes classification or types of fixed assets listed in the specified State Classifier is carried out, considering the functional purpose, specifications use of conditions.
The National Bank of Ukraine by its Resolution 'On rescheduling settlement of transactions on exports and imports of goods and the introduction of mandatory sale of foreign exchange earnings' of 05.12.2014, № 270 extended the currency restrictions.
The Document provides that:
1) reduction of terms of settlement for transactions on exports and imports of goods from 180 to 90 days;
2) introduction of requirements on mandatory sale in the interbank currency market of Ukraine, regarding:
- earnings in foreign currency from abroad to legal entities which are not authorized by banks, individuals - entrepreneurs, foreign missions (except official representatives), to accounts maintained in authorized banks to conduct joint activities without establishing a legal entity, as well as income of foreign currency accounts of residents opened outside of Ukraine based on personal licenses of the National Bank of Ukraine;
- earnings in foreign currency from abroad to individuals in an amount equal to or exceeding the equivalent of 150 000 UAH per month. The exceptions are remittances from abroad in foreign currency to individuals (residents and nonresidents) returned due to incorrect account details. These provisions are temporary and will be valid from 20May to 20 August 2014.
The National Bank of Ukraine in its letter of 15.05.2014 № 29-113/23395 considered the issues of pension duties payment buying foreign currency.
Regarding pension duties payment under contracts to purchase foreign currency settled to 01.04.2014 with the value date 01.04.2014 and later the regulator reported that the pension duty is paid independently of date of the contract to purchase foreign currency from 01.04.2014.
Also, the authors of the letter noted that during the banking transactions the basic standard which determined the need of the pension duty payment by a legal entity or individuals is to purchase foreign currency.
The National Bank explained the following regarding the payment of fees at the time of currency transactions on a 'swap'. During the operations of purchase and sale of foreign currency on a 'swap' the two banks involved in the transaction should pay a pension duty. At the same time one of the participating banks carries out fee payment purchasing their first foreign currency transactions in the currency of the 'swap' and another bank during the purchase of foreign currency to meet the second (reverse) transaction.
The Social Insurance Fund for Temporary Disability considered the issue regarding the requirement for sick leave if the employee works in one city and gives a sick leave issued by medical institution from another city where the employee has a permanent place of residence.
According to p. 1.6 of the Instructions on the procedure for issuing documents of identification temporary disability citizens, № 455, issuing documents of identification temporary disability, passport or any other identity document of disabled is conducted by the doctor (a medical assistant). By p.1.9 of Instruction № 455, issuing of disability sheet (medical certificate) is provided in outpatient clinics by the doctor (medical assistant) mainly where they live or work. By p. 1.10 Instructions are provided for people who have temporary disability which is occurred outside the main workplace and residence, sick leave is issued at their temporary residence with the permission of the chief physician of the medical and preventive institutions by the number of disability days. Consequently, if temporary disability didn’t occurred at the main place of work but at the place of permanent residence, the permission for issuing of the sick leave by the chief physician wouldn’t be required.
