Public Organization “Enrightened” directs its efforts to the projects aimed at creation of a real law-governed state in Ukraine, improvement of business environment and as a result approaching Ukraine to the EU requirements. To achieve this goal members of Public Organization «Enrightened» have several times participated in drafting laws, particularly:
1) The Draft Law on development of the taxpayer electronic cabinet.
Members of Public Organization «Enrightened» performed as draftspersons of the Draft Law No. 5368 on the taxpayer electronic cabinet development, which now is integrated into the Tax Code of Ukraine.
Being a part of the expert team members of Public Organization «Enrightened» have conducted several meetings with representatives of the State Fiscal Service of Ukraine, the Ministry of Finance of Ukraine, the Tax Affairs Committee of the Verkhovna Rada of Ukraine for discussing of purposes and grounds related to functioning of this electronic service. Upon results of such work the initiative group has proved the necessity of enshrining this service at the legislative level, as well as defended the scope of functions to be realized with the help of this service.
Due to applied efforts, not excepting efforts of Public Organization «Enrightened», taxpayers have received a simple and transparent mechanism for interaction with controlling bodies. Besides, the interference of officials of controlling authorities into taxpayer accounting data has been minimized. Implementation of the taxpayer electronic cabinet was a significant step to development of the tax management, as well as improvement of business environment, that respectively lays the preconditions for improvement of economic relations between Ukraine and the EU.
Due to efforts of expert group and particularly members of Public Organization «Enrightened» now it is possible to:
- create a simple and transparent mechanism for interaction with controlling bodies;
- enhance the information exchange using automatic record of all documents to be sent to the taxpayer by controlling body;
- minimize the interference of officials of controlling authorities into taxpayer accounting data;
- control the payments made by the taxpayer to the budget according to the controlling body data;
- timely receive information from your tax database profile;
- conduct registration actions, receive permits and licenses remotely, in electronic form, without personal conduct with representatives of controlling bodies.
The Draft Law No. 5368 as of November 07, 2016 was adopted as the Law of Ukraine “On amending the Tax Code of Ukraine with regard to improvement of business climate in Ukraine” No. 1797-VIII as of December 21,016.
2) The Draft Law on Exit Capital Tax.
Alexander Shemiatkin, a member of Public Organization «Enrightened» Supervisory Board, is a co-author of the draft law, which has been approved by the Cabinet of Ministers of Ukraine. Alexander is an author of numerous articles and a participant of various meetings with state and public representatives regarding implementation of the Exit Capital Tax in Ukraine.
Purpose of the project is to reform an outdated Corporate Income Tax in terms of economic decline and unprofitability of Ukrainian enterprises. The draft law is intended to:
- minimize tax administration expenses (a taxation model shall ensure a simple and effective administration as well as implementation of electronic cabinet and electronic document flow);
- create economic conditions for real income declaration (through taxation of income to be exited and declaration of property tax, which is credited towards reduction of the Exit Capital Tax and the Personal Income Tax);
- create preconditions for reduction of the Unified Social Tax with intention to its further cancelation (cancelation of the Unified Social Tax maximum base, setting criteria for fictitious use of the Single Tax by individuals-entrepreneurs, who are actually employed by the legal entity, that would result in increasing the tax base of the Personal Income Tax);
- create conditions for transfer of the Single Tax payers to the general taxation system (through raising the threshold related to the obligatory registration as a VAT taxpayer from UAH 1 000 000 to UAH 5 000 000);
- As a result – implementation of zero declaration.
The draft law was introduced by the President to consideration of the Verkhovna Rada of Ukraine as a Draft Law No. 8557 “On amending the Tax Code of Ukraine with regard to the Exit Capital Tax”.
3) The Draft Law on specifics of criminal proceedings within tax relations and tax/ fees administration issues.
Members of Public Organization «Enrightened» have participated in elaboration of the Draft Law No. 3448 “On amending the Tax Code of Ukraine with regard to specifics of criminal proceedings within tax relations and tax/fees administration issues”.
This draft law is intended to deal with a problem when the State Fiscal Service of Ukraine uses the verdicts on approval of plea agreements under Articles 205, 212, 212-1, 358, 366 of the Criminal Code of Ukraine as evidence of unreality of transactions conducted by bona fide taxpayers. Besides, the draft law is aimed at reduction of the number of criminal proceedings against bona fide taxpayers and, consequently, reduction of pressure on business by means of:
- clarification of elements of crime under Article 212 of the Criminal Code of Ukraine – tax evasion appears only due to failing to pay adjusted tax liabilities to the State budget of Ukraine within terms specified by the law;
- raising the threshold of bringing to responsibility under Article 212 of the Criminal Code of Ukraine;
- implementing the procedure of closure of criminal proceedings in case when the liabilities are unadjusted or were paid within terms specified by the law;
Currently the Draft Law No. 3448 as of November 10, 2015 is impending to be reread in the Verkhovna Rada of Ukraine.
4) The Draft Law on the Temporary register of applications on budget reimbursement.
Public Organization «Enrightened» also participated in elaboration of the Law of Ukraine “On amending paragraph 56 of subsection 2 of section XX “Transitional provisions” of the Tax Code of Ukraine with regard to the Temporary register of applications on budget reimbursement”. Members of Public Organization «Enrightened» are co-authors of the draft law on amending the Tax Code of Ukraine with regard to the Temporary register as well as explanatory note to this draft law.
The draft law is aimed at solving the issue, that the
Temporary register of applications on budget reimbursement has not formed yet in respect of requirements of the law and has not posted on the official web-site of the Ministry of Finance of Ukraine. The draft law is intended to establish a clear and transparent mechanism of the Temporary register formation and procedure of budget reimbursement under this register directly in the Tax Code Ukraine.
5) The Draft Law on avoidance of VAT tax evasion in transactions related to supplying of goods and struggling with shadow export.
Another project of members of Public Organization «Enrightened» is elaboration of the draft law of Ukraine on amending the Tax Code of Ukraine with regard to avoidance of VAT tax evasion in transactions related to supplying of goods and struggling with shadow export.
The Draft Law is intended to struggle with shadow transactions of the agricultural market by establishing special VAT taxation mechanism for export transactions with agricultural goods, as well as implementation of other significant changes.
6) The Draft Law intended to improve access to justice while appealing resolutions (decisions) in cases on administrative violations
The Draft Law has been elaborated involving members of Public Organization «Enrightened» and is intended to resolve the following issue: the person who appeals the resolution (decision) in case on administrative violation, is exempted from payment of the state duty, payment of which is no longer required by the law, but nevertheless is obliged to pay the court fee according to the Law of Ukraine “On the court fee”. The draft law is intended to remedy this situation which has allegedly occurred due to the technical error and imperfection of legislative technique.
7) The Draft Law on ensuring the taxpayer’s rights in disputes with state authorities and measures aimed at reducing the number of such disputes in courts.
The draft law is intended to provide a possibility of appealing tax consultations related to tax law application, which are practically just runaround replies issued by controlling authorities. It is also proposed to specify the procedure for reimbursement of expenses, incurred by the party in favor of which the court decision is delivered and which is not a state authority, as well as a size of such reimbursement. Besides, it is proposed to foresee consequences which may occur when the state authorities violate its obligation to adopt the grounded decision upon results of the complaint consideration within administrative appeal procedure.
In May 2017 Public Organization «Enrightened» has joined the working group of the Ukrainian side of the Ukrainian-EU Civil Society Platform (Ukrainian side of CSP), which is the part of the Ukrainian-EU Civil Society Platform. Ukrainian side of CSP promotes effective participation of Ukraine’s civil society in the process of implementation and monitoring of execution of the EU-Ukraine Association Agreement.