Analysis of the Draft Law:
Draft Law Analysis on Amendments to the Tax Code of Ukraine
Essence of the Draft Law
The draft law aims to implement the provisions of the OECD Recommendations on Tax Measures to Combat Bribery of Foreign Public Officials in International Business Transactions. It proposes amendments to the Tax Code of Ukraine to prohibit the recognition of bribery expenses as tax expenses and introduces mechanisms for reporting such cases to the National Anti-Corruption Bureau of Ukraine.
Structure of the Draft Law and Main Provisions
The draft law includes amendments to various articles of the Tax Code, specifically expanding the definition of undue advantage, clarifying the terms “official” and introducing new points regulating responsibility for providing undue advantage. The changes also concern taxpayers’ obligations regarding reporting and document retention that may evidence such transactions, as well as the obligations of controlling bodies to inform the National Anti-Corruption Bureau about detected cases.
Key Provisions Important for Legislators, Experts, Business, and Citizens
– Prohibition of recognizing bribery expenses of officials as tax expenses, which will impact companies’ financial reporting.
– Introduction of an obligation for taxpayers to report detected instances of undue advantage and adjust tax liabilities.
– Clarification of terminology to facilitate law application in practice and ensure compliance with international standards.
– Mechanisms of cooperation between tax authorities and the National Anti-Corruption Bureau for effective detection and counteraction of corruption offenses.
This draft law is an important step in combating corruption at the international level and improving tax discipline in Ukraine, which is crucial for ensuring business transparency and increasing trust from international partners.
Analysis of Other Documents:
Draft Law Analysis on Amendments to the Tax Code of Ukraine
1. Author’s Position
The document’s authors support the draft law as it aims to implement international standards and combat bribery of foreign public officials. The draft law is recognized as an important step towards Ukraine’s integration into international organizations such as the OECD.
2. Main Provisions of the Document
The document contains a list of amendments to the Tax Code of Ukraine, taking into account OECD recommendations. Key provisions include:
– Introducing a prohibition on tax deductions for expenses related to bribery of foreign public officials, which will contribute to combating corruption.
– Establishing a mechanism for the National Anti-Corruption Bureau of Ukraine to be notified of circumstances potentially indicating undue advantage during inspections.
– Introducing fines for taxpayers who indicate expenses in declarations that may suggest bribery, and increasing the financial result for such expenses.
– Prohibiting the reduction of taxation objects by expenses related to bribery and excluding such expenses from the expenses of individual entrepreneurs and independent professionals.
– Implementing additional measures for control and prevention of corruption actions, which may increase transparency and trust in the taxation system.
