The amendments to the Law "On the State Revenue Service in Ukraine" extend the authorities of the state revenue agencies (item 27 of chapter 1). Some of these authorities are ambiguous, as they contravene the Constitution of Ukraine and increase the administrative load.
Thus, both the Law and the Tax Code authorize the state revenue agency to address the court to suspend operations with the tax payer´s account, if the officials of the state revenue agency are denied access to hold the audit.
Thus, the rights of the tax payer are restricted before the audit is held and the tax law violations are verified.
The President of Ukraine supposes that these provisions violate the fundamental principles of responsibility for the infringements. The supervisory bodies may apply them to restrict business activity of the tax payer.
Both the Law and the Tax Code are claimed to suggest a wrong procedure of effecting the administrative detention.
The motions of the President of Ukraine suggest another procedure of effecting the administrative detention: the court shall verify whether administrative detention is justified within 96 hours since the penalty administration.
The President of Ukraine believes that the provisions of the Code and the Law on the extension of the tax pledge on the property, the balanced cost of which equals two rates of the tax arrears, contravene the constitutional guarantees of the title to property and the right to conduct entrepreneurial activity (articles 41 and 42 of the Constitution of Ukraine), and the Resolution of the Constitutional Court of Ukraine of 24 March 2005 No. 2-рп/2005.
To correct this legal deficiency, the President recommends that the tax pledge is extended on the property, the balanced cost of which equals the sum of the tax arrears.
The motions state that both the Law and the Tax Code of Ukraine authorize the officials of the state revenue service to address the court:
to invalidate legal actions that can be invalidated under the applicable laws;
to collect the funds and property received by the Parties by invalid legal actions, and by the economic obligations invalidated by court.
However, these procedural provisions are not supported by the material norms, and can not be legally realized. It is suggested to supplement the Law in part of amendments to the Civil Code to invalidate agreements concluded against the state and public interests, and determine the legal consequences.
The Law "On Amendments to several Laws of Ukraine due to Adoption of the Tax Code of Ukraine" amends the Budget Code of Ukraine.
The amendments withdraw 50 per cent of revenue from the individual income tax payable under the Tax Code of Ukraine in the territory of Kyiv to the general fund of the State Budget of Ukraine. Thus, the budget of Kyiv is subject to a special procedure of withdrawal of funds from the State Budget of Ukraine, which are placed to the budgets of the local self-government and the local budgets in other regions.
The President of Ukraine believes that this privilege is unjustified and fails to meet the principles of equity, impartiality, and unity of the budgetary system of Ukraine as stated in the Budget Code. The suggested amendments restrict implementation of the programs on education, public health, social security and culture by the territorial community of Kyiv, and disrupt the financial support of the local self-government in Kyiv (article 142 of the Constitution of Ukraine).
The President of Ukraine insists that the applicable order of placing the revenue from the individual income tax to the budget of Kyiv remains unaltered.
The President of Ukraine submitted his motions to other provisions of the Tax Code.
The draft is registered under Reg. No. 7101-2.