These legislative proposals are included in the Bill, ‘On Legalization of Income obtained by Legal Entities and Natural Persons´, Registered in The Verkhovna Rada of Ukraine.
The Bill (Reg. No.1289) aims to lay down legal and organizational principles for legalizing the ‘shadow´ income of legal entities and natural persons not connected with serious crimes against the fundamental principles of Ukraine´s National Security, Health and Safety, an individual´s will, the peace and security of mankind, International Law and Order, and related drug trafficking and related offences.
The provisions included in the Bill are aimed at improving conditions in Ukraine for the development of an open and transparent market economy, and contributing to its ‘coming out of the shadows´, a more effective coordination of Law Enforcement operations, stimulation of business activities, and the prevention of crime.
The Bill defines those entities subject to legalisation. These are legal entities set up by Ukrainian citizens, and natural persons with Ukrainian citizenship. The legalization objects include Income (money in National and Foreign currency), both cash and non-cash, Securities, Shareholdings in legal entities´ Property, Land and other natural resources, Intellectual Property, other Movable or Immovable Property and Property Rights, obtained by the legalization entity at any time prior to production of a Tax Return legalising them. Also included in the above objects are those beyond the Customs Borders of Ukraine, on which Taxes, Dues (obligatory payments) to the Budgets and Special Purpose State Funds established by Ukrainian legislation have not been paid, or where the gaining of said income was connected with some other violation of legislation.
The Bill envisages relevant guarantees for legalization entities, and in particular exemption from provision of information as to the sources of the legalized income, exemption of tax on legalized income, provision of confidentiality in information received by the relevant State bodies and their Officers during legalization, and other guarantees.
The Bill creates a legalization procedure for implementation by The Ministry of Justice of Ukraine within a year.