Verkhovna Rada Committee on Environmental Policy, Nature Resources Utilization and Elimination of the Consequences of Chornobyl Catastrophe examines certain draft laws in its competence

However, the content of the draft law does not correspond to its title because in addition to amber the draft law also refers to the responsibility for violations of rules of the use of mineral resources and illegal mining of mineral resources of national importance, violations of the procedure of the use of amber, precious stones, precious metals and goods made of them, and also inclusion into the list of payers of the duty on obligatory state pension insurance of the entities trading in amber and goods made of it, jewelry and household articles made of precious stones and precious metals.

The authors of the draft law have not provided financial feasibility study for the proposed amendments, which is foreseen by the requirements of the Rules of Procedure of the Verkhovna Rada of Ukraine in case of submission of the draft law, whose approval will lead to changes of budget indicators. The availability of the said study is the basis for making corresponding conclusions on the feasibility of its approval.

In view of the above, the Committee decided to recommend that the Committee on Legislative Support of Law Enforcement submit to the Verkhovna Rada of Ukraine a proposal concerning returning the draft law to its authors for finalization.

The Committee also considered the draft law of Ukraine on amendments to the Budget Code of Ukraine (concerning preventing the illegal extraction and commercialization of amber and goods containing amber) (reg. No.4466).

The content of the draft law does not fully meet its title because in addition to amber, the draft law also refers to jewelry and household goods made of precious, semi-precious stones, and precious metals. Also at present many household goods are made up of parts containing precious metals or protective coatings made of them but the information on the application of provisions of the draft law in relation to such goods is absent.

In view of the above, the Committee decided to recommend that the Committee on Budget submit to the Verkhovna Rada of Ukraine a proposal concerning returning the draft law to its authors for finalization.

The Committee members also focused on the draft law on amendments to the Law of Ukraine "On the State Budget of Ukraine for 2016" (touching the increase of expenditures on medical assistance to employees of the exclusion zone at the expense of the reserve of medical subvention funds) (reg. No. 4450).

Following the consideration, the Committee decided to recommend that the Committee on Budget submit to the Verkhovna Rada of Ukraine a proposal on the approval of the draft law as a basis.

They also considered the draft Law of Ukraine on the tax sovereignty of Ukraine and offshore companies (reg. No. 4380).

The draft law sets the following objectives:

- Definition of the essence of the tax sovereignty of Ukraine as part of its general political sovereignty within the meaning of Articles 1 - 2 of the Constitution of Ukraine;

- Practical implementation of the provisions of Articles 9, 67, Items 1 and 8, Section 2 of Article 92 of the Constitution of Ukraine as a precondition for the conclusion of international agreements of Ukraine on taxation and / or exchange of tax information (its disclosure);

- Harmonization of Ukrainian legislation with the EU law on the principle of Acquis Communautaire (hereinafter EU Asquis), adaptation of the legislation of Ukraine to the provisions, regulations and standards of the Organization for Economic Cooperation and Development (hereinafter OECD) and other international organizations mentioned in this Law;

- Prevention of the use of offshore tax jurisdictions (offshore companies) by tax resident of Ukraine for the purpose of tax evasion or violation of foreign exchange regulations (foreign exchange control);

- Introduction of restrictions on making certain controlled transactions involving offshore companies or to limit the economic attractiveness of such controlled transactions through the introduction of offshore duty;

- Fight against corruption law infringements and legalization (laundering) of proceeds of crime, financing of terrorism or proliferation of weapons of mass destruction, including committed by politically important persons;

- Creation of incentives for returning to Ukraine the funds previously repatriated to offshore tax jurisdictions (in favor of offshore companies).

The draft law envisages that the Law does not regulate matters of the transfer price formation, which are regulated by the Tax Code of Ukraine.

It should be noted that this draft law proposes amendments to 55 laws of Ukraine, which envisage that persons falling within the definition of an offshore company pursuant to the Law of Ukraine "On the tax sovereignty of Ukraine and offshore companies" or persons, who are under control of an offshore company or a resident of a foreign country, recognized by the decision of the United Nations or by the law of Ukraine as an aggressor against Ukraine or as occupier of a part of the territory of Ukraine, or if final beneficiaries of such persons have residency of an offshore country or a country - aggressor (occupier) or if such persons act on behalf and in favor of an offshore company or a resident of a country-occupier (aggressor):

- are banned from the purchase of facilities subject to privatization, transfer into lease or concession, investment, public-private partnership, initiation of industrial park creation, granting of financial support, any subsidy, permission for construction works;

- are not allowed to use mineral resources and engage in mining, be a natural monopoly, a participant of the electricity market of Ukraine, a power generating company and an energy supplier, a customer of the natural gas market, a general contractor, a contractor, a subcontractor, a performer and co-performer of the state defense order;

- are banned from transfer by operators or providers of corporate rights for provision of telecommunications services and frequency resource into their ownership.