Klymenko: Association with EU to improve work on taxes and duties in Ukraine

Customs and Tax systems are fully ready for implementation of the Association agreement between Ukraine and the European Union, minister for incomes and fees Oleksandr Klymenko told a roundtable, ForUm's correspondent reports. 

"I am happy to report that all customs and tax issues have been agreed, and the Ministry for income and fees does everything in its power to realize full potential of the agreement," the minister noted. 

According to Klymenko, the key tasks of the department include the introduction of the institute of authorized economic operators. "It will enable the Customs to reach the new level of work, the same level similar European structures have. Moreover, the time issue remains also important. We know our problems and we are solving them. In particular, we are working on simplification of registration and clearance procedures and introducing of various services to facilitate the work. Thus, Kyiv interregional customs house has launched a pilot project on preliminary customs registration, and about 4000 freights have already used this service," he said.

The minister added that his Ministry stakes on technologies, enabling to save taxpayers' time and observe high quality of controlling procedures. "Iliychevsk and Odessa customs houses have been equipped with scanner systems. 100% of freights undergo scanning, which enables to save time (10 minutes maximum to inspect one vehicle)," Klymenko informed. 

In his opinion, both the business and controlling agencies should aim at European standards. "It means not only rights, but also responsibility. To join the EU automatic information exchange system on incomes and taxes, Ukraine must first implement the control mechanisms over transfer pricing. We should not lose the trace of Ukrainian capital when it crosses the border, as this trace often leads to low tax jurisdictions, which allow tax evasion," the official underlined. 

Klymenko also noted that Ukraine and Brussels now focus on the offshore issue and fight against tax minimization through transfer pricing scheme. "According to EU Declaration EUCO 75/1/13 REV1, the Union intends to start a serious fight against tax minimization, including in third countries.

The first steps to take include the expansion of the functioning sphere of the automatic information exchange system on incomes and taxes, both within the EU and the world. The EU also intends to insist on introduction of proper standards on tax administration in third and developing countries. As a result, the Association with the EU will enable Ukraine to improve effectiveness of its tax and customs systems in general and the fight against violations in particular," he summed up.