February 25 – March 2019, 2019. Amendments were made in the occupational classification DK 003:2010

The State Fiscal Service of Ukraine in the category 135.03 “ZIR” gave the answer to the question whether it was possible to send several forms of reporting electronically during the day and to re-send the same reporting, in case of correction of indicators (not receiving the first receipt, etc.) and which, in this case, to be considered “Original”.

There are no any restrictions for a taxpayer to send several accounting documents in electronic form under various tax returns, calculations, and reports within one day. In addition, the taxpayer has the right to re-submit tax returns, calculations, reports in case of correction of errors before the expiration of their deadline, indicating the type of document “reporting new”.

If the taxpayer sent several copies of one tax document to the controlling authority (in the case of correction, non-receiving of the first receipt, etc.), the original is considered to be the electronic document received by the controlling authority, provided that it was accepted into the database of the controlling body and the taxpayer received the second receipt.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On Dividend Payment to a Foreign Investor” of 15.02.2019, No. 556/6/99-99-15-02-02-15/ІПК reported that the income tax received from a non-resident with a source of their origin from Ukraine is paid to the budget when paying such income in favor of a non-resident or a person authorized by him/her (except for the permanent representation of a non-resident on the territory of Ukraine).

At the same time, according to tax authorities, the amount of income from which the tax is deducted and paid is to be determined on the basis of the official rate of the National Bank on the date of payment of such income to a non-resident.

The State Fiscal Service of Ukraine in its letter “On the analysis of the economic activity of tax payers in 2018, in particular regarding the implementation of export transactions” of 28.01.2019, No. 2559/7/99-99-12-03-01-17 reported that SFSU carried out analysis of the taxpayer’s economic activity in 2018, regarding the implementation of export transactions.

Despite the introduction of the Register of VAT refunds and automatic control over their provision, there are cases of minimizing VAT tax obligations by using tax evasion schemes through export transactions that are unusual for the main type of activity, the so-called “non-standard export”.

Therefore, the SFSU will conduct a detailed analysis of the identified business entities and will take comprehensive measures to properly process. In the course of the work, a study will be carried out on the subject of the reality of business transactions between the “nominee owner” and “real exporter” and the reality of changing the property status of the first one.

An analysis will also be provided:

· the application of prices for the subject of compliance with the usual ones;

· the fact of conducting business transactions (or only drafting of documents) and actual changes in the structure of assets and liabilities, equity of the companies in connection with its economic activity and the establishment of the following elements:

· establishment of a special legal personality of participants in a business transaction;

· establishment of the connection between the fact of acquisition of goods (services) and business activity of the taxpayer;

· establishment of compliance by the taxpayer of the specific requirements on the documentary confirmation of the amounts of the tax credit and/or budget VAT repayment;

· establishment of the fact of long VAT payment in the price of goods (services) bought by the taxpayer;

In addition, it will be taken into account that the resale of goods by the exporter with a small margin almost always has a positive financial result, which suggests that there is a reasonable economic objective. At the same time, the courts have repeatedly pointed out that despite the existence of a positive financial result, the tax revenue from such transactions for the taxpayer is much more significant. In its turn, level out the essence of business activity, since the subject must seek to obtain an economic effect from the growth of assets, and not from minimizing tax liabilities. Consequently, if the amount of income from the transaction is not significant in relation to the size of the tax benefit, then such a transaction may be considered illegitimate.

The State Fiscal Service of Ukraine in its Individual Tax Advice “On the practical implementation of norms of current legislation” of 18.02.2019, No. 583/6/99-99-13-02-03-15/ІПК reported that for the violation of statutory provisions on the Unified contribution, the taxpayers are imposed the obligation to accrue, calculate and pay the USC, according to the Law of Ukraine “On the Collection and Accounting of the Unified Contribution to the Mandatory State Social Insurance” of 08.07.2010, No. 2464-VI (hereinafter – the Law No.2464), the financial sanction to be used according to the Art. 25 of the Law No.2464.

Thus, according to para. 7 of part.11 of Art. 25 of the Law No.2464 for the non-submission, late submission, submission not under the established form of reporting, specified by the Law No.2464, the SFS carries out the imposition of the fine in the amount 10 non-taxable minimum incomes for each such non-submission, late submission or submission not under the established form.

The same actions, done by the payer of the USC to which it was applied the fine for such a violation, – entails the fine imposition in the amount 60 non-taxable minimum incomes for each such non-submission, late submission or submission not under the established form of reporting, specified by the Law No. 2464.

In addition, according to para. 3 of part. 11 of Art. 25 of the Law No. 2464, it should be imposed the fine in the amount 10% of the specified amount for each full or not full reporting period, for which such an amount was additionally accrued, but not more than 50% of the amount of the USC additionally accrued, for additional accrual by the body of revenues and collections or by the payer of the USC late submitted.

The representatives of the fiscal department have emphasized that the responsibility specified by para.3 of part.11 of Art. 25, No. 2464, is used exclusively by the controlling body during the audit of the correctness of the USC accrual and payment.

The Ministry of Economic Development and Trade of Ukraine on its website published an order “On Approval of Amendment No. 8 to the National Classification of DK 003:2010” of 15.02.2019 No. 259, according to which the amendment No.8 was made to the specified Classification.

Unfortunately, the Ministry did not make public the content of the amendment. We offer a table, which displays the added positions in the Classification, obtained by comparing the old and new editions of the Occupational Classification.

The open question is whether some positions to be excluded.

It should be noted that the sampling was conducted only with respect to the first three sections of the Classification and maybe some new editions were left out of our attention.