Business Ombudsman Council’s operational results in Q3. 2024
During July-September 2024, the Business Ombudsman Council received 278 complaints and closed 145 cases. The investigation of 92 cases is ongoing. Thus, in the reporting quarter, the Council recovered and saved UAH 156 mn for business.
According to Ukrainian business, tax (59%), customs (6%) and law enforcement bodies (15%) are “anti-heroes” of the BOC rating. The separate largest category of complaints is tax issues. In particular, we are talking about problems in SMKOR (tax invoices suspensions, inclusion in risky payers’ lists, non-enforcement of court decisions on tax invoices registration). Their number accounted for 58% of the total number of tax complaints.
In the reporting quarter, the Council paid special attention to changes in the SMKOR system based on own-initiative investigation results. After analyzing the statistics received from the STS, the Council notes an unstable trend towards a decrease in tax invoices suspension cases: there was a surge to 0.96% in June, but the number of suspensions gradually went down to to 0.62% in September 2024. Such indicators show some improvement in tax invoices registration, particularly if compared with the period of the BOC’s own-initiative investigation into SMKOR. In Q3 2024, about 15% of active payers faced tax invoices registration suspension (which is lower than figures of 2022, when about 30-40% of active payers faced it).
“I would like to emphasize over and over again that the solution to Ukrainian business problems lies in moving away from punitive practices and implementing the idea of “Consult First”. It is already introduced in the law on the administrative procedure. For its effective implementation, the Council developed a road map for state bodies and businesses, the so-called Declaration of Fair and Reasonable Administration . This document resonated with government offices. By the way, the city of Chortkiv in Ternopil Oblast was the first to sign it“, says Business Ombudsman Roman Waschuk.
The report focus was the BOC institutional development. The Council will soon celebrate its ten-year anniversary. It spent the last year of its activity reorganizing and renewing the composition of the team. In August 2024, the Cabinet of Ministers appointed Yulia Andrusiv the Deputy Business Ombudsman and Chief Legal Officer.
In addition, the Council engaged specialists from the legal field, infrastructure and construction to create a new division – Policy & Recovery. Within this direction, BOC supports the private sector in overcoming the consequences of russia’s military aggression and implementing reconstruction projects. The institution is already receiving first renewal-related complaints from businesses. Currently, the Council is also conducting a survey “Ukraine at War: Transformation of the Business Environment and Investment Prospects.” You can take the survey by following the link.
The Council boosts interaction with all stakeholders, as well as maintains contacts with the regions. During the last four months, the Business Ombudsman paid regional visits to Cherkasy, Odesa, Lviv and Ternopil. A dialogue with local government bodies, as well as local businesses, allows to learn firsthand about entrepreneurs’ systemic problems and needs and address these issues at the highest level.
BOC is working in its normal mode. You can submit a complaint through the form on our website.
Read the report at the link.
