Tax audits resumed

On February 9, 2021, Resolution of the Cabinet of Ministers of Ukraine dated February 3, 2021, No. 89 entered into legal force and effect. By this Resolution, the government partially lifted the moratorium and permitted certain types of tax audits.

Starting from February 9, 2021, a tax authority may:

1. Resume temporarily suspended documentary and factual audits commenced before March 18, 2020, and not completed.
2. Conduct documentary audits of companies included in the scheduled documentary audits of taxpayers for 2021.

Please note that during the first and second quarters of 2021 the State Tax Service may include additional companies in the schedule for 2021.

3. Conduct unscheduled documentary audits as a result of obtaining information that indicates a violation of the tax laws (Article 78.1.1 of the Tax Code of Ukraine (the “TCU”)) and/or detecting unreliability of data indicated in tax returns (Article 78.1.4 of the TCU), concerning only those business entities that have formed a tax credit due to the registration of risky transactions related to purchasing goods/services from the list of risky taxpayers. This list is defined within the scope of activities of the Temporary Investigative Commission of the Verkhovna Rada of Ukraine for investigating facts of possible corrupt practices of public officials published in the mass media that resulted in significant losses of revenues of the state budget of Ukraine. The above Commission was established under Resolution of the Verkhovna Rada of Ukraine dated 24 April 2020 No. 568-IX.
4. Conduct unscheduled documentary audits of taxpayers that violated the deadlines set for the arrival of goods under import transactions and/or receipt of foreign currency proceeds under export transactions.
5. Conduct unscheduled documentary audits by a higher-level controlling authority to control actions of the officials of the lower-level controlling authority based on Article 78.1.12 of the TCU.
6. Conduct unscheduled documentary audits related to the transfer pricing rules under Articles 78.1.14, 78.1.15, 78.1.16 of the TCU.

As to the rules concerning controlled foreign companies, please ask a question to our chatbot at the link: https://t.me/DentonsTaxBot