The State Tax Service will create a list of taxpayers with the highest tax risks

The Procedure for the implementation of a pilot project on the functioning of the tax risk management system (compliance risks) in the State Tax Service (CMU Resolution No. 854 of 25.07.2024) has been adopted, which does not add to optimism. This was reported by MP Nina Yuzhanina.

1. The Ministry of Finance has been removed (or it has removed itself) from determining tax risks.

A specially created expert commission from among the heads of structural units of the central office of the State Tax Service will approve tax risks, and the Head of the State Tax Service will approve them.

"This violates the basic principle of the work of the central executive bodies - the ministry sets the rules, the service follows them.

Let me remind you that according to Article 77 of the Tax Code, a risk-oriented approach is used to formulate a schedule for documentary scheduled audits, and it is the Ministry of Finance that establishes the procedure for formulating the schedule and the list of risks and their division by degrees.

So, who gave the right to violate the Law of Ukraine?" the MP writes.

2. Another list is being created - this time the List of taxpayers with the highest tax risks!

"The State Tax Service has an unkillable love for creating lists! They have just passed a list of "white taxpayers" through the law, and now the government is creating a "black list"

This List includes taxpayers with the highest tax risks, as defined in the general plan, operational plan, segmental and sectoral plans.

The most important thing is that this List is not formed automatically!

According to the Procedure: structural units of the STS submit proposals for the list → the structural unit for compliance implementation forms the list → the Expert Commission reviews and approves it → the Head of the STS approves it.

As a reminder: currently, the risk level is formed automatically based on the data of the tax information systems, the criteria are defined by regulations.

According to the authorities, the transition to a "manual mode" of taxpayer selection is an approach to European standards. And this procedure has passed the anti-corruption expertise.

If the Ministry of Finance does not somehow correct the situation during the approval of the Methodology, the consequences will be simply terrible," emphasizes N. Yuzhagina.

3. The Procedure still does not answer the question of how the tax risk management system will function alongside the existing processes.

"There are provisions of the Tax Code that define all the basic rules of interaction between the tax authorities and taxpayers, in particular, the formation of a schedule of scheduled inspections, grounds for unscheduled inspections, grounds for seizure of property, for the application of financial sanctions, etc.

I am not sure that those who adopted this document understand how all this will work simultaneously.

Because the Procedure does not specify the stages of the experiment (the Ministry of Finance should determine the stages of the system's implementation) or the criteria for its success/failure.

It seems that the main goal was to transfer the selection of taxpayers for audits to the "manual mode", to take the tax office out of control and give it superpowers.

After all, it was possible to describe the risks within the existing powers and processes without any "experiments".

I have no doubt that everything has already been decided on the "success" of the project," - commented the MP.