Zelensky signs controversial “tax terror law”
The provisions of the law, which has been enacted under No. 466-IX, expand regulatory authorities’ rights, tighten the taxation rules, as well as introducing unprecedented control mechanisms for foreign companies. korupciya.com Ukrainian President Volodymyr Zelensky has signed bill No. 1210 into law to amend the Tax Code of Ukraine by improving tax administration and removing technical and logical inconsistencies in tax legislation.
The provisions of the law, which has been enacted under No. 466-IX, expand regulatory authorities’ rights, tighten the taxation rules, as well as introducing unprecedented control mechanisms for foreign companies, according to the presidential press service.
Experts said bill No. 1210 had been drafted and voted before the economic crisis and the coronavirus pandemic, which significantly affected the number of changes it proposed, so the implementation of the controversial provisions is at variance with the economic realities that have developed recently.
Read also Zelensky signs into law IMF-required bill on banks Simultaneously with the signing of the law, the president submitted to the parliament a package of proposals regarding amendments to its wording. These changes should be prepared jointly with experts and businesses within three months.
With the involvement of business representatives, experts, and lawmakers, the government should also prepare proposals for consistent improvements and simplification of the administration of taxes and fees, ensuring the clarity of the taxation rules and streamlining terminology.
As UNIAN reported earlier, the Verkhovna Rada, Ukraine’s parliament, on January 16 passed bill No. 1210 that amends the Tax Code of Ukraine to improve tax administration and remove technical and logical inconsistencies in tax legislation. Ukrainian businesses dubbed the draft law ‘the tax terror bill.’
Almost all major business associations and those of Ukraine’s foreign investors, including the European Business Association, the American Chamber of Commerce, the Ukrainian League of Industrialists and Entrepreneurs, the Federation of Employers of Ukraine, and many others largely criticized the bill back in November 2019.