Ukraine Will See Tax Changes

March 26, 2014 Taxation in Ukraine

Tax changes in UkraineKIEV – The government of Ukraine wants to free the country from the grips of corruption, and bring the nation in line with modern taxation, economic and financial principals.

Addressing the members of a plenary meeting of the government on March 25th, the Prime Minister Arseniy Yatsenyuk of Ukraine described the economic, political and financial problems faced by the nation at the current stage, and stated that going into the future the country has to thoroughly change the entire tax system and the regime of tax administration to reflect the standards and practices of the modern world, ultimately helping to stabilize the national economy and grow tax revenues.

In his speech, as one of the main means of reducing the occurrence of corruption, tax evasion and other financial crimes in the country, the Prime Minister announced that a Financial Investigation Service is to be established to replace the currently operating institution of the tax police, in order to create and operate a more efficient and less corrupt government department to investigate economic offenses and financial crimes.

According to Arseniy Yatsenyuk, new measures are also to be taken to combat the sale and distribution of counterfeit and smuggled goods, a move which would not only significantly increase tax revenues, but to also have a direct impact on the operations of organized crime groups, and the associated corruption and other illicit activities.

In an effort to create a modern and efficient system of tax administration, the tax authorities have also been tasked with creating a unified national electronic database of all excisable goods produced in Ukraine or imported from overseas.

The Prime Minister also urged law enforcement agencies to thoroughly and fairly investigate the suspected cases of corruption and illegitimate use of government funds believed to have occurred in the recent past, and demanded that all investigations will be conducted without any political pressure, and in full accordance with the laws and legislation of the country.

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