Government supported creation of the single legal entity for tax authorities

Cabinet of Ministers of Ukraine approved the draft bill on amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine on improving the management structure in sphere of the state tax and customs policy.

The draft bill is aimed at introducing effective organizational structure of the tax authorities built on a functional principle. This is one of the key issues for further reformation of the customs and tax services.

Document adds changes to the Tax Code of Ukraine, Laws of Ukraine “On the central executive authorities” and “On the civil service”. These changes clearly distinguish functions between the tax and customs services in the sphere of administration of taxes and duties. At the same time, the status of the structural units of territorial authorities (separate units) of the State Tax Service of Ukraine is being fixed by the state tax inspectorates.

The draft bill also prescribes a number of clarifying provisions. Specifically regarding the:

- delegation of powers on the execution of functions stipulated by the Tax Code, legislation on the payment of the single social contribution in the executive vertical of the STSU;

- levels of the controlling bodies for the possibility of administrative appeal against decisions of such bodies by the taxpayers; peculiarities of accounting for the large taxpayers in territorial authorities (separate units) of the STSU which supports the large taxpayers or its subdivisions; terminology of the Code regarding the titles of authorities implementing the tax and customs policy.

The draft bill determines the peculiarities of salary remuneration and execution of service by the state employees of the State Tax Service of Ukraine and the State Customs Service and their territorial authorities.

The draft bill is interrelated with the draft Law of Ukraine “On amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine on improving the management structure in sphere of the state customs and tax policy” (as of 28.10.2018 was submitted to the Verkhovna Rada of Ukraine under №. 2318) which introduces a new format of activity for the STSU and SCS as the single legal entity, subsequently their territorial authorities will operate not as public bodies, but as separate entities.