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Tax abolition in Ukraine. They hide “war” property.

Tax abolition in Ukraine.  They hide "war" property.

From the data of the Ministry Ukraine Finance Clarifies that at the end of June 2022 The country’s debt amounted to more than 3 trillion hryvnia, or about $ 105.4 billion.

At least the United States and the European Union She declared 24 billion dollars at the beginning of the war with the Russian invader. helpsIt has been a state-owned fund until now It funded only $1.27 billion.

It is true that the country is mired in war, but there is no economic crisis. Despite the loss of 6 million citizens, the Ukrainian economy is growing. And with it the shadow economy, which the Ukrainian Ministry of Economic Development and Trade estimates at 44.2 percent. The country’s gross domestic product, which is equal to 340 billion dollars. This is an increase compared to the previous year by up to 11 pages

The rest of the article is below the video

See also: Gwen spoke sharply about government policy: “It’s high treason.” Kaczyński resigns from KPO?

Less taxes and three installments

The authorities in Kyiv They are double and triple, To persuade its citizens to disclose assets on which income tax has not been paid Reporting and paying lower rates for the so-called peace of mind and inviolability.

On August 15, the Verkhovna Rada passed a law on tax exemption on charitable aid to family members of the wounded and deceased Defenders of Ukraine, which included the ruling Extension of tax abolition for another six months, i.e. until the end of March 2023. (The current cancellation was due to expire at the end of August 2022.)

vs Indication of hidden property in the country or abroadThe Ukrainian authorities offered the owners lower tax rates.

And yes: cash, real estate, and those cars Remained in the country, the owners will pay 5 percent. tax. However, for those who They hid their belongings abroad, and the rate is 9 percent.

That’s still a huge saving in comparison With standard Ukrainian income tax rates of 18 per cent. of normal persons and 1.5 per cent. Mandatory military fees.

To whom does the state “forgive” property?

It should be noted here that the state “forgives” every hidden citizen Assets worth up to 400 thousand hryvnia (about 11 thousand dollars). This means that if a person earns such money, buys some assets with it, or simply leaves it under the pillow without paying taxes on it, he does not have to file a special declaration.

Even after the amnesty expires, the tax authorities will not have the right to check the legality of their origin.

They can benefit from tax cancellation Dishonest Entrepreneurswho underestimated their tax obligations; Those who worked without the required registration, and People who work illegallyAnd the Workers working abroad In the so-called gray area.

On the other hand, from the tax exemption law Government officials and former MPs cannot benefitwho got rich inexplicably.

Because of this limitation, oligarchs also cannot automatically benefit from cancellation. Most of them – before starting a business – had a writing episode in their careers.

Because of this, among other things Rinat Akhmetov (The richest man in Ukraine, owner of the football club Shakhtar Donetsk, in 2006-2012 a deputy of the Verkhovna Rada from the Party of Regions list), Sirhi Tarotta (politician, metallurgical businessman and sports activist, in 2014 head of the Donetsk regional administration), Victor Pinchuk (businessman, philanthropist, and politician of Jewish origin, founder of the Interpipe group, son-in-law of eonid Kuchma), or Vadim Novinsky (businessman and politician of Russian nationality, founder of the financial and industrial group Smart Holding Group in Ukraine and co-owner of Metinvest Holding), excluded from cancellation.

In addition to former officials and the ruling minority, tax amnesties will also not be available to people who have been subjected to economic sanctions by Ukraine in connection with the war.

Banks can keep cash

In addition to the legal exclusion of certain groups of “taxpayers,” the regulations also provide formal obstacles to calculating non-taxable funds.

In case Money must be deposited into a special account in the bank. Until the appropriate certification is obtained from the authorities, the funds remain frozen there.

The problem is If someone deposits more than 400,000 hryvnia zlotys (a little more than a thousand dollars), the bank requires the source of origin You know. If, during a bank investigation, it turns out that the money comes from, for example, Russia, then the bank will not only deposit it, but He will confiscate them for the benefit of the state.

All this means is that there is no long line of people wanting to reveal their origins.

According to the Ukrainian “Economic Pravda”, from the moment the cancellation was announced, that is, from September 2021, to this day The tax office imposed taxes on the assets of the shadow economy amounting to 4 billion hryvnia (That’s over $108 million) Paid Tax in the total amount of 240 million UAH, or 649 thousand. Gap. That’s not much, considering the size of the shadow economy.

Get out of the shadows

Pawe Nejman, an international tax expert from Admiral Tax, states that preferential tax rates are now in place, at the time of the asset disclosure. It is not known how long they will be after that. And that, according to a tax expert, is probably what Ukrainians fear most. It does not end with only one payment for tax calculation.

Whoever comes out of the shadows once, i.e. reveals property, must report to the tax office what he has earned every year. And then you will not pay 5 or 9 percent, but even more – at the discretion of Najman.

According to our interlocutor, taxes will rise in the coming years and this is guaranteed according to our interlocutor. for the reconstruction of the country The government in Kyiv needs 185 billion dollars. – Estimates of the Ukrainian Institute for the Future.

The government will either have to significantly raise citizens’ taxes or print empty money, leading to increased inflation.

Strength has an ace in her sleeve

As the Pravda Economic website writes, the Ukrainian authorities are currently trying to moderate the persuasion, but if this does not help, they will resort to more radical measures.

On July 21, new regulations of the National Bank of Ukraine entered into force Stating that Ukrainians abroad may not spend more than the equivalent of 100,000 PLN from their hryvnia accounts. hryvnia per month ($2.7 thousand) and making non-cash transfers in an amount not exceeding the equivalent of $30 thousand. Hryvnia per week ($820).

The government in Kyiv acknowledges that this is just the beginning of the changes. More preliminary rulings in preparation Indirect tax audit methods. They give the state the right to ask citizens to explain where they have the money to buy a car, a house, or other assets? If the explanation is not convincing, the taxpayer will feel it firmly in his pocket.

Ukrainian expert opinion for the money. pl:

Andriy Servetnyk, Head of International Tax Practice and Deloitte Private, Deloitte Ukraine:

Firstly, the trial taking place in Ukraine is not really a tax amnesty, but rather a mixture of “capital amnesty”. In essence, this means that anyone can declare certain assets (money or property) from underpayment of tax.

In effect, this means no amnesty for a person who fails to pay taxes but is unable to file and declare assets.

secondly, The biggest flaw in this pardon is that it does not include money. A person who has cash and wants to benefit from the amnesty must deposit the appropriate funds in the bank, primarily risking failing the anti-money laundering tests. [bankowe testy weryfikacyjne – przyp. red.] And freeze the money in the bank.

Katarzyna Bartmann, financial journalist

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