The Procedure for confirmation of the possibility or impossibility of the taxpayers’ fulfillment of their duties, defined in subpara. 69.1 of para. 69 of subsection 10 of Chapter XX “Transitional Provisions” of the Tax Code of Ukraine, entered into force
On September 6, 2022, the Procedure for confirmation of the possibility or impossibility of the taxpayers’ fulfillment of their duties, defined in subpara. 69.1 of para. 69 of subsection 10 of chapter XX “Transitional provisions” of the Tax Code of Ukraine, entered into force.
The Procedure defines separate grounds for determining the impossibility of fulfilling tax obligations by taxpayers – legal entities and taxpayers – individuals.
Depending on the circumstances, the Procedure sets for taxpayers different deadlines, within which a statement of impossibility to fulfill tax obligations must be submitted together with supporting documents and information.
The tax authority must consider the statement and the documents provided by the taxpayer within 20 calendar days (the period may be extended).
According to the Procedure, if the tax authority considers that the documents provided by the taxpayer are insufficient to make a final decision, the tax authority can make a preliminary decision upon the taxpayer’s statement. In such a case, the tax authority should also propose that the taxpayer submit specifically defined additional documents.
The Procedure establishes clear deadlines for the tax authority to send a preliminary decision to the taxpayer upon the taxpayer’s statement (20 calendar days). As for the final decision, the Procedure does not contain clearly defined terms for its adoption and referral.
Given the lack of clear deadlines for the tax authority to make a final decision on the taxpayer’s statement and that the tax authority is empowered at its own discretion to establish a cause-and-effect relationship between the circumstances of force majeure and the taxpayer’s possibility to fulfill tax obligations, to request additional documents and apply to other authorities, we believe that it can be a difficult task for taxpayers to prove impossibility to fulfill their tax obligations.
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