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Periodicity of scheduled documentary inspections by tax authorities

A periodicity of scheduled documental examinations over tax payers is defined according to a level of risk of their business activity (high, medium, insignificant). According to the Article 77 of the Tax Code of Ukraine the tax payers with the insignificant level are examined not more than one time per 3 years, the tax payers with the medium level are examined not more than one time per 2 years, and the tax payers with the high level are examined not more than one time per a year. 

A local state body is responsible for the periodicity of examinations and for an inclusion the tax payers into the schedule. At the same time, according to the Article 3 of the Guidelines on composing the schedule of the examinations over entrepreneurs, approved by the Order of the State Fiscal Service of Ukraine dated the 26 of June 2012 no. 553, criteria are different for determination the levels of risk and the schedule. It depends whether the tax payers are:

  • Legal entities;
  • Entrepreneurs;
  • Financial institutions, permanent representative offices and representative offices of non-residents.

It is unlikely that the tax payer will define the level of risk of his or her business activity. It is explained that only the State Fiscal Service of Ukraine has the full information about business activity, at the same time this state body uses the automatic system which is called “The selection of the tax payers-legal entities and defining the inclusion to the schedule of examinations”.

But we need to admit that the most popular criteria are information about relations with other business subjects for the selection of the tax payers-legal entities to the schedule. It can be relations with the subjects which:

  • Have features of fictitiousness;
  • Are participants of conversion centers;
  • Registration is cancelled according to the laws;
  • Have an initiated criminal case;
  • Have a launched operational investigation;
  • Don’t submit tax reports;
  • Are wanted;
  • Are recognized as a bankruptcy.

So business subject can be included on the schedule if its counterparty didn’t submit tax reports in time, for example.

As follows, first of all, it is important to choose a right counterparty. Secondly, you should remember that the scheduled documental examination must be conducted only if the State Fiscal Service of Ukraine had send to the tax payers two documents - copies of an order of a head of the State Fiscal Service about examination and written notices with a date of examination, via mail (registered letter with a notice about delivery) or had handed them over the receipt not later than 10 days before the moment of the examination according to the Article 77 of the Tax Code of Ukraine.

Considering abovementioned matters, we recommend to use law firm’s “Pravova dopomoga” legal services. Specialists will help you to define the periodicity of inclusion your company to the schedule and will provide a legal accompany during the examination.

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