The government has determined how the audit of the SEC will be conducted

People's Deputy Nina Yuzhanina reports that the text of the CMU's Resolution No. 464-r of May 24, 2024 "On Conducting an Audit of the System for Monitoring Risks and Criteria for Blocking Tax Invoices and Procedures and Criteria for Unblocking Them" has been published on the government portal.

The audit will be conducted by the Ministry of Finance together with the State Audit Service and the State Tax Service.

The audit will focus on the risk monitoring system and the criteria for blocking tax invoices, as well as the procedures and criteria for unblocking them.

It will also check the performance of functions related to the suspension of TI/CC registration:

▪️ by the State Tax Service itself,

▪️ by the relevant commissions within it.

All this will last for 6 months, and then within 2 months after the audit is completed, the working group of central executive authorities entrusted with the audit will have to report the results to the Cabinet of Ministers of Ukraine.

If the audit starts immediately (it may already be underway), the government will have the results at the end of January 2025.

Once again, the decision of the National Security and Defense Council of Ukraine was made on January 23, 2024, and the CMU's order was urgent.

But its implementation will take a year.

Here we have both "a change in the state's attitude to business" and a new social contract between the state and business, according to which the government has pledged, in particular, to "reduce the administrative burden and increase the transparency of the taxation system."

The MP states, "And the worst part is that while all this is going on, every fifth company that the tax authorities recognize as risky will have to prove the opposite.

For businesses that, like the vast majority of Ukrainians, strive to win, nothing will change in the near future."

What exactly will the State Tax Service check under the PCIS?

The CMU Resolution No. 464-p states that the STS will be inspected in relation to the following functions

► implementation of the mechanism for suspension of TI/CA registration
and
► the activities of commissions on suspension of TI/ SA registration, as defined by the procedures approved by CMU Resolution No. 1165.

And that's it!

"But does it make sense to check the functions of the tax authorities for six months when the question is about the very concept/mechanism of the PCIS (the same one, its essence and consequences) and the CMU Resolution No. 1165, which went far beyond the Tax Code?" asks the MP.

Therefore, according to N. Yuzhanina, unfortunately, this is another profanation from the authorities, a desire to once again blind the public.

By the way, the MP recalls the analytical study conducted by the NACP on the PCIS, "Corruption risks in the procedure of suspension/resumption of registration of tax invoices/adjustment calculations in the Unified Register of Tax Invoices" and the Business Ombudsman Council's own investigation "PCIS as a tool for VAT administration".

"If the government had read these materials, the tasks in the CMU's Order No. 464-r for the PCIS audit would have looked different," Yuzhanina believes.