The Council supports the establishment of a white business club

The Tax Committee recommends adopting draft law No. 11084 on the so-called white business club or "tax nannies" in the first reading. We reported about this here.

According to People's Deputy Nina Yuzhanina, this club is actually already operating, as the Tax Code sets out the criteria under which taxpayers are not included in the schedule of documentary audits.

However, for some reason, there was a need to additionally identify companies with a high level of voluntary compliance with tax legislation, which

• no scheduled documentary audits will be conducted;
• the timeframe for conducting desk and documentary audits (up to 10 days in total) to confirm VAT refunds will be reduced to 5 days;
• individual tax consultations, information on tax risks and ways to eliminate them will be provided within 5 days.

What are the concerns?

For the first time, the Tax Code will contain a provision on the absence of a decision on compliance with the risk criteria, which was previously provided for by CMU Resolution 1165 and was used to suspend the registration of tax invoices.

In particular, taxpayers who had blocked tax invoices at the time of the decision to include them in the register will not be able to become members of the white business club.

Questions also arise as to what principle was used to determine the level of tax burden, especially with regard to the area of owned or leased land plots of at least 500 hectares for single tax payers of the fourth group (farmers).

However, according to the head of the committee, this provision will be discussed.

What is missing from the draft law?

It is imperative to include the criterion of defense production by enterprises.

After all, such enterprises have been established recently and will not fall under any of the criteria set out in the draft law, but they are currently bringing the most benefit to the state.