resolved to improve the VAT administration procedure as much as possible. We will
stick to the clear and transparent system of the value added tax administration,"
Prime Minister of Ukraine Arseniy Yatsenyuk underlined at a board meeting of
the Finance Ministry on Monday, 27 July.
Minister appealed to Head of the State Fiscal Service Roman Nasirov after the signing
by the President of Ukraine the Law on the VAT administration to report on the
implementation of this law on the monthly results: "I want to compare the
volume of value added tax received in this month in 2014 with the amount we are
to get after the introduction of a new system of the VAT administration."
has reminded that there were some attempts in the Parliament to break the
scheme of the special VAT administration procedure":"They failed as the
abolition of special procedures of the VAT administration is profitable only to
those engaged in shady business, to those who are laundering money, using tax
pits and pumping out billions of hryvnias from the budget."
was a sinecure of billions of hryvnias for the Tax Office, Security Service, Prosecutor’s
Office, tax police and some banks protected by the law enforcement system.
That's actually five elements which washed out billions of hryvnias from the
budget," he stressed.
Yatsenyuk emphasized the need for a transparent system of the VAT refund. Clear
criteria of automatic compensation, he noted, are set out in the law. But in
another part, the so-called "VAT scheme", there is embezzlement of
public funds, "An illegal company just fills in a piece of paper, such a VAT
tax declaration, puts it into the system. And then it turns out that the
country's budget owed a tax pit a million or billion. This is not just embezzlement
of funds, this is a classic scheme of a state budget’s scam."
that SFS Head Roman Nasirov and his first Deputy Serhii Bilan managed to stop
the illegal VAT refund worth UAH17 billion.
Minister also reminded that despite the reluctance of some MPs in the Parliament
the law on the electronic VAT administration system was voted, "No single step
back in this matter."
to him, the same concerns excise taxes: "Those who pay taxes publicly and
transparently will be fine with the electronic administration of excise duties.
But those who are engaged in smuggling, laundering and counterfeiting of
excisable goods – they need no transparent system."