What is the procedure for assisting in the collection of tax debt in international legal relations?
Pursuant to subpara. 14.1.154 of the TCU, a tax debt in international legal relations is a monetary obligation, including penalties, fines, if any, and expenses related to its collection, unpaid within the established period, which, based on the relevant document of a foreign state, is subject to collection, which may be enforced in accordance with an international treaty of Ukraine.
A monetary obligation in international legal relations is an obligation of a taxpayer to pay to the budget of a foreign state the relevant amount of funds in the manner and within the time limits determined by the legislation of such foreign state (sub-clause 14.1.38 of the TCU).
A document of a foreign state under which the amount of tax debt is collected in international legal relations is a decision of the competent authority of a foreign state on the accrual of tax debt to the budget of such state, which, at the request of the said competent authority, is subject to execution in the territory of Ukraine in accordance with an international agreement of Ukraine (subpara. 14.1.53 of the TCU).
Tax notice in international legal relations is a written notification of the controlling authority on the taxpayer's obligation to pay the amount of the monetary obligation specified in the document of a foreign state, under which such amount of the monetary obligation is repaid in accordance with an international agreement of Ukraine (sub-clause 14.1.158 of clause 14.1 of Article 14 of the TCU).
Pursuant to para. 104.1 of the TCU, assistance in the collection of tax debt in international legal relations under international treaties of Ukraine is provided in the manner prescribed by the TCU, taking into account the specifics set forth in Article 104 of the TCU.
Upon receipt of a document from a foreign state under which the amount of tax debt is collected in international legal relations, the controlling authority shall determine within thirty days whether such document complies with international treaties of Ukraine. If such a document does not comply, it shall be returned to the competent authority of the foreign state. If the said document is recognized as compliant with international treaties of Ukraine, the controlling authority sends a tax notice to the taxpayer in international legal relations in the manner prescribed by Article 42 of the TCU (clause 104.2 of the TCU).
The tax debt in international legal relations is converted into hryvnias at the official exchange rate of hryvnia to foreign currency determined by the National Bank of Ukraine on the day the tax notice is sent to such a taxpayer (clause 104.3 of the TCU).
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