Will the tax authorities be liable for failure to achieve performance indicators?

MP Nina Yuzhanina commented on the provisions of the draft law on the establishment of key performance indicators (KPIs) for tax authorities, which was submitted for registration by the Head of the Tax Committee and will soon be published on the website of the Verkhovna Rada of Ukraine.

Who sets the KPIs and their importance for the tax authorities?

According to the draft, the Ministry of Finance (it is likely that the State Tax Service itself will prepare a draft of this document, and the Ministry of Finance will only approve it).

Who will assess the fulfillment of these indicators?

The draft law does not specify (probably the tax authority itself).

Where are the results of the KPI assessment taken into account?

According to the draft, they are used to set the KPI value for the following periods.

That is, if the results are bad, they will reduce the indicators. "Although, most likely, the indicators will be such that the tax office will fulfill and exceed them," Yuzhanina is sure.

What is the responsibility of the STS management for the failure to achieve the KPIs?

Almost none.

KPIs set for the tax authority will be taken into account when setting KPIs for tax officials.

And it is the failure to achieve personal KPIs in accordance with the Law of Ukraine "On Civil Service" that may be taken into account for making management decisions.

But personal KPIs are still being set and evaluated!

"Has anyone heard about the dismissal of a tax officer because of a negative assessment of their performance based on the results of the evaluation? I have not!" the MP emphasizes.

And among the top officials, most of them are "excellent students".

Thus, according to N. Yuzhanina, this draft law does not change anything.

Taxpayers will remain "overboard"

The draft law No. 12359 does not even hint at involving taxpayers in the assessment of key performance indicators of tax authorities.

However, no one is better than taxpayers to assess the level of tax services, in particular, the level of service or to assess the transparency of its work.

And the tax office with the KPI system will continue to report on the "number of information and reference services provided", "number of tax invoices", "additional amounts charged under the audit reports", etc.

The MP reminds that according to the research of the Business Ombudsman Council, the level of taxpayers' trust in the central office of the State Tax Service is 19%, and in regional tax authorities - 13%.

"Unfortunately, even if this draft law is adopted, there will be no qualitative changes for taxpayers," - says N. Yuzhanina.