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The Business Ombudsman Council provides recommendations to state bodies on the basis of individual cases and in accordance with published systemic reports. Here we have collected information on the implementation status of systemic recommendations only.

Report name
Issued recommendations
Execution status

Systemic report "Administering taxes paid by business"

The Ministry of Finance of Ukraine and the State Tax Service of Ukraine - if necessary, to develop and submit to the Cabinet of Ministers of Ukraine, and the Cabinet of Ministers of Ukraine – to submit to the Verkhovna Rada of Ukraine the Draft law of Ukraine introducing amendments to paragraph 73 of subsection 2 of section XX "Transitional Provisions" of the TCU, by replacing in the first paragraph and in the second paragraph words and figures "prior to December 31, 2019" with words "prior to entry into force of the Law of Ukraine" On Introducing Amendments to the Tax Code Ukraine Aimed at Improving Tax Administration and Elimination of Technical and Logical Inconsistencies in Tax Legislation".

Cabinet of Ministers of Ukraine
State Tax Service of Ukraine
Ministry of Finance

Implemented

To undertake all required measures (including organizational and technical), which will ensure restoring SEA VAT indicators of those VAT payers whose registration had been annulled and subsequently renewed, without the need for the taxpayers to go to courts requesting restoration of such indicators. If it is necessary to implement foregoing recommendations - to develop and submit to the Cabinet of Ministers of Ukraine, while the Cabinet of Ministers of Ukraine – to approve draft amendments to the Procedure No.569 and/or other delegated legislative acts.

Cabinet of Ministers of Ukraine
State Tax Service of Ukraine
Ministry of Finance

Implemented

To develop amendments to the USC Law (as well as Instruction No.449 and Procedure No. 435 in the respective part), aimed at ensuring practical possibility of writing off arrears amount under the unified social contribution, as well as penalties and fines accrued on it, to individual entrepreneurs who, as at the date of the Law No.592 entry into force included information about themselves in the USR and made an entry on activity termination (i.e. took separate actions established by paragraph 9-15 of Section VIII "Final and Transitional Provisions” of the USC Law, but as at the date of Law No.592 entry into force have pending arrears under the USC emerged in the period from January 1, 2017, to the date of registration of their activity termination).

State Tax Service of Ukraine
Ministry of Finance

Implemented

To develop amendments to the USC Law (as well as Instruction No.449 and Procedure No. 435 in the respective part), aimed at abolition of legal grounds for accrual by the tax authority of the single contribution for June-August 2020 to persons who used the mechanism established by the paragraph 9-15 of Section VIII "Final and Transitional Provisions" of the USC Law, and received a positive decision on full or partial write-off regarding the USC arrears, accrued since January 1, 2017, as well as the relevant fines and penalties

State Tax Service of Ukraine
Ministry of Finance

Implemented

To conduct a comprehensive awareness campaign about provisions of the Law No.592 for business entities that were established and registered before July 1, 2004, but information about which was not included in the USR.

State Tax Service of Ukraine

Implemented

The State Tax Service of Ukraine – to issue a letter of explanation on the recordation of exchange rate differences under liabilities expressed in foreign currencies: i. set out clear criteria for determining whether non-resident companies are a subsidiary, associate, or a joint venture, a branch, a representative office or other division of companies - borrowers, ii. provide a list of criteria (non-exhaustive) proving that the obligation owed to non-residents under loan agreements was such that prepayment thereof was not planned and improbable in the near future.

The Ministry of Finance of Ukraine – issue a letter of explanation or a generalized tax consultation clarifying methodology of application of the TCU’s provisions on the foregoing matters.

State Tax Service of Ukraine
Ministry of Finance

Implemented

The State Tax Service of Ukraine – to issue a letter of explanation on the debt-to-equity swap and increase of a debtor entity’s own capital at the expense of additional contributions: i. confirm that entities applying IFRS in their activities may recognize their liabilities settled if the creditor (who is not a related party) has forgiven the existing debt; ii. at the same time, however, make a reservation that: a. corresponding obligation’s reduction will affect the entity’s income only if the creditor is a third party and not the owner (participant, shareholder) of the respective debtor in such obligation; and that b. size of an owner's share, as well as claims received in exchange (to seek refund, payment of dividends, etc.) do not matter when applying this criterion.

The Ministry of Finance of Ukraine – issue a letter of explanation or a generalized tax consultation clarifying methodology of application of the TCU’s provisions on the foregoing matters.   

State Tax Service of Ukraine
Ministry of Finance

Implemented

To approve a new composition of the Expert Council with preserving current balance between public sector, business associations and expert community. To appoint at certain administrative position in the Expert Council (one of the deputies of the head, etc.) an official who will have an organization of the Expert Council’s work among his/her key responsibilities and who will have sufficient powers to organize its effective operation.  

Systemize issues requiring issuance of the GTC (based on proposals that received from members of the Expert Council and information from other sources about current problems in the tax sphere), approve and bring to attention of members of the Expert Council a plan of work of the MoF on issuance of GTCs. Such a plan should include, inter alia, a list of all draft GTCs (topics for GTSc) that MoF plans to process with establishing their priority (taking into account opinions of members of the Expert Council), the order and terms of consideration. Such a plan should be regularly updated or replaced by a new one for the next period (for example, a quarter or six months). 

Increase the frequency of meetings of the Expert Council, bringing it at least to the figure specified in paragraph 11 of Regulation on the Expert Council on preparation of GTCs of the MoF, approved by the Order of the MoF dated November 20, 2017, No. 948 (“Meetings of the Expert Council are held as needed, but at least once a quarter”.).  

Increase a number of drafts GTCs discussed and voted in every meeting of the Expert Council up to at least 5.  

Use extensively within the period between meetings of the Expert Council a practice of processing drafts GTCs remotely through exchange of amendments and comments and voting in the electronic form.             

Ministry of Finance

Implemented

Systemic report “Big challenges for small business”

To review the Action Plan to the SME Strategy and determine its relevance, priority and expediency.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Other CEBs

Implemented

To introduce the practice of informing SMEs of major changes in the legislation (for example, through publication at the SME Development Office’s website) that directly set new requirements for micro- and small-sized businesses.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office
Ministry of Digital Transformation

Implemented

To qualitatively review and initiate amendments to the legislation by providing flexible forms of work organization and regime, including part-time employment, working in shifts, work time logging, weekends and holidays, remote work, etc.

Cabinet of Ministers of Ukraine
Other CEBs

Implemented

As regards the proportionality of employer's liability for violations of the labor legislation — to review sizes of fines, taking into account the nature, degree of offenses committed and an employer’s degree of guilt, and to provide for the possibility of applying warnings for minor or first-time offenses and/or granting employers a grace period for their elimination without an obligation to pay respective fines

Cabinet of Ministers of Ukraine
Other CEBs

Implemented

To take steps to launch the National export web portal, its proper and regular filling with useful and accessible information for active and potential exporters, as well as introduce a separate section dedicated to promotion and using innovation opportunities by exporters, as set forth in the Action Plan to the Export Strategy.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Export promotion office

Implemented

To review and evaluate the relevance of unimplemented activities outlined in the Action Plan for the implementation of the SME Strategy, prioritize activities that may have a fast and significant effect on the SMEs’ access to finance and to stop implementing ineffective measures.

Cabinet of Ministers of Ukraine
Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented

To consider creating a section dedicated to the SMEs’ access to finance at government-based web resources, for instance, the SME Development Office’s portal sme.gov.ua. Provide aggregation of up-to-date information on funding programs and grants, relevant educational programs for SMEs.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office

Implemented

To provide quality information and training materials on access to finance and general financial literacy, including preparing SMEs for obtaining bank financing and preparing loan applications. Make this resource widely known to the target audience.

The SME Development Office

Implemented

To initiate training programs for SMEs aimed at improving access to finance through technical assistance programs. Consider regular conducting of such programs on the ongoing basis with budget and/or donor funding, for example, through regional business support centres. To avoid a formalized approach to implementing such programs (for example, when performance is assessed based on the fact of the training itself), introduce measurable and focused key performance indicators, such as quantitative indicators of the SMEs’ participation, the number of SMEs that have tried to or received funding after participation in training programs, and others.

The SME Development Office

Implemented

Systemic report "Business focus on labor-related issues"

To submit the Criteria’s draft for assessing a risk degree from conducting business activities to the CMU for approval.

Ministry of Social Policy

Implemented

To amend Sub-clause 4 of Clause 15 of the Procedure for Issuance of Permits for Carrying Out Hazardous Works and Exploitation (Application) of Hazardous Machines, Mechanisms, Equipment, approved with the Resolution of the CMU No. 1107 dated October 26, 2011. In particular, the relevant amendments should clearly specify that violation of labor safety entails refusal to extend the validity period of that specific permit, requirements of which were breached due to a labor safety accident. Also, to provide the territorial bodies with a clarification letter ensuring correct application of the relevant regulation.

State Labor Service

Implemented

To enhance an operational capacity of the Main Department of the SMS in Kyiv city (to increase a number of offices and staff members assigned to registration and consideration of incoming applications and other correspondence).

State Migration Service

Implemented

Systemic report "Main problems faced by business in customs sphere"

To develop and adopt an order, which would enable customs authorities and declarants to exchange documents issued in an electronic form (i.e., certified by declarants’ or authorized representatives’ electronic digital signature) with scanned copies of corresponding originals (if requested by customs authorities or provided by declarants’ on their own initiative) attached thereto.

Ministry of Finance

Implemented

To introduce amendments to the Procedure for Refund of Advance Payments (Prepayment) and Erroneously and/or Excessively Paid Amounts of Customs Duties, approved by the Order of the Ministry of Finance of Ukraine dated July 18, 2017 No. 643, which would enable a declarant to attach to the application for refund of erroneously and/or excessively paid customs duties amounts a court decision rendering illicit or acknowledging unlawful decision or actions at the part of SFS authorities that led to (resulted in, caused) erroneous and/or excessive payment of customs duties (i.e., as an alternative to enforcement letter issued by a court and/or a court decision authorizing refund of certain amount of customs duties).

Ministry of Finance

Implemented
— comments: On 12 April 2019, the Order of the Ministry of Finance of Ukraine No.80 "On Approving Changes to the Procedure for Repayment of Prepayments (Prepayments) and Erroneous and / or Excessive Payments of Customs Payments" entered into force. The aforementioned regulatory act has finally eliminated the controversial requirement to submit to the court the application for refund of the writ of execution of the court and / or the decision of the court, which has come into force (if any), to recover the amounts of the corresponding customs payments.

To update the Explanation Letter, dated August 4, 2016 № 26593/7/ 99-99-19-01-01-17 or issue a new one or methodical recommendations for the customs to clarify the procedure for enforcing court decisions as well as decisions adopted within the framework of the administrative appeal procedure, approved in declarant’s favor. Due attention should be paid to the need to take into account not only the operative but also the reasoning part of the court decisions on the merits of the dispute. If a court decision were to find decision or action of the customs authority that led to (resulted in, caused) payment of excessive amount of customs duties as being erroneous or false – to state that such a language constitutes sufficient ground to proceed with the refund of overpaid sums of customs duties without initiating an additional judicial procedure.

State Customs Service

Implemented

To prepare amendments to the existing Draft Law of Ukraine No.4614 dated 06.05.2016 “On Introducing Amendments to the Customs Code of Ukraine to Ensure Protection of Intellectual Property Rights While Moving Goods Across Customs Border of Ukraine” No.4614 dated 06.05.2016; or to introduce an alternative draft law to ensure implementation in Ukraine of the requirements set forth in (i) Regulation (EC) No 608/2013 of the European Parliament and of the Council regarding customs enforcement of intellectual property rights; as well as (ii) Commission Implementing Regulation (EU) No. 1352/2013 establishing the forms provided for in Regulation (EU) No 608/2013, in particular:1.1.To bring the concept "goods infringing Intellectual Property Rights" in line with EU requirements, including exclusion of goods that are objects of so-called "parallel trade” from the substantial scope of this concept (in accordance with Clauses 3-5 of Article 1 of Regulation No. 608/2013);1.2.To set forth clear procedural terms, unified with European Union requirements, applicable within the procedure for suspending customs clearance of goods suspected of infringing IPR (as stipulated by Articles 3, 7, 9, 11-12, 17-18, 23, 26 of the Regulation No.608/2013);1.3.To improve the regulation of the procedure for destruction of goods, whose customs clearance has been suspended on suspicion of violating IPR, including laying down the "tacit consent” principle for their destruction in the absence of objections from a declarant or owner of goods; establishing a simplified procedure for the destruction of goods containing in small consignments (according to Articles 25 – 26 of Regulation No. 608/2013);1.4.To approve unified IPR protection measures related forms in accordance with European Union standards (as prescribed by Regulation No.1352/2013).

Ministry of Finance
State Customs Service

Implemented

To ensure existence of effective legal framework on governing mechanism of authorized economic operators, which would be consistent with the relevant European Union legislation, - to ensure prompt adoption of the Draft Law of Ukraine No.7473, whose provisions would, inter alia, foresee:1.1.Grounds for extension (or suspension) of 120-day time period for conducting assessment of compliance with Authorized Economic Operator eligibility criteria to enable requesting from a candidate (and corresponding disclosure) of additional documents and information - for instance, when additional information is required to ensure a comprehensive compliance assessment, whose disclosure requires significant time.1.2.That existence of a pre-trial investigation in a criminal proceeding should not, by itself, constitute a self-sufficient ground for suspending Authorized Economic Operator status (contrary to what was envisaged by the Draft Law of Ukraine No.4777).1.3.That while contemplating revocation of Authorized Economic Operator status due to infringement of customs rules, it is mandatory to ascertain existence of connection between the amount of losses (losses of the State/unpaid taxes resulting from such infringements) and total invoice value of goods that were moved by an entity across customs border of Ukraine during period of time employed by customs administration for conducting such a comparison.

Verkhovna Rada of Ukraine

Implemented

Systemic report "Control over controllers: status of control bodies reform implementation"

To propose amendments to the Law “On State Supervision (Control)” that would envisage having an exhaustive and mandatory list of control bodies. The amendments should stipulate that in dealing with a body not included on the list, a business entity would have the right not to allow representatives of such body to carry out any inspections.To ensure that any changes in this list would only be possible in the course of the legislative process if corresponding changes are made in the relevant laws on control bodies.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

Implemented

To set a clear timetable for control bodies to introduce a risk-oriented approach to the exercise of control, namely:-To develop or to align the criteria for assessing the risk of business activity and determining the frequency of scheduled inspections;-To develop or to align the standard forms of reports to be prepared following scheduled (unscheduled) control measures, which would include comprehensive checklists depending on the risk level.

Cabinet of Ministers of Ukraine

Implemented

To propose amendments to applicable laws which would:-define the powers of control body officials to enter data into the IAS;-enhance personal liability of officials for entering false and/or untimely entry of information into the IAS.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

Implemented

Systemic report "Combatting raidership: current state and recommendations"

To prepare and approve the protocol determining the structure and format of the information files to be transferred and accepted through information interaction of information systems of the State Registry of Real Rights Over Immovable Property and the State Land Cadastre according to Clause 10 of the Resolution of the Cabinet of Ministers of Ukraine No.509, dated 12 July 2017. The respective technical protocol, inter alia, shall aim at creating technical opportunities for providing the state cadastral registrars with the information about the registered real rights over immovable property by granting direct access to the State Registry of Real Rights Over Immovable Property and entering data about owners and/or users of the land plot in the data recorded with the State Land Cadastre.

Cabinet of Ministers of Ukraine
Ministry of Justice
State Service of Ukraine for Geodesy, Cartography and Cadastre

Implemented
— comments: Informational interaction became fully operational starting from mid-November, 2017.From the practical standpoint, it means, in particular, that now cadastral registrars are finally technically able to access information on ownership or lease of a particular land plot through direct access to the Register of Rights. In addition, when the state registrar makes certain changes to the Register of Rights, the data of the relevant land plot is being automatically synchronized with the Land Cadastre
To strengthen efforts aimed at properly informing both the professional circles and general public about the status and actual scope of authority vested with these commissions; here emphasis shall be placed on procedural breaches that constituted ground for cancellation of registration actions, – such information should be periodically disclosed at least in the aggregated form.

Ministry of Justice

Implemented
— comments: A separate section is available at the Ministry of Justice website, which describes the activity of the State Commission on Complaints Consideration in the Sphere of State Registration; the Ministry's management constantly informs the public via media, as well as placement in social networks. The same work is conducted by the leadership of the main territorial departments of justice in regions and Kyiv city.

To initiate certain amendments to the legislation aimed at preventing breaches of the existing territoriality rules while conducting registration actions.

Ministry of Justice

Implemented
To introduce public disclosure of the results of the off sight documentary audits.

Ministry of Justice

Implemented
— comments: Starting from August, 2017, the Ministry of Justice has been publishing the names of registrars and notaries, whose has been stripped of (temporarily or permanently) of access to state registers, indicating (if applicable) the term of such a restrictionSee, in particular:https://minjust.gov.ua/spysok-der-reest-ta-not

To initiate changes in the Unified Registry of Notaries, which would allow for disclosure of information about the notaries whose access to state registries was blocked/cancelled.

Ministry of Justice

Implemented
— comments: The Deputy Minister of Justice has, on several occasions, confirmed the Ministry's intention to eventually implement such a recommendation.
To elaborate the generalized clarifications for state registrars to minimize occurrence of typical mistakes committed by them while conducting registration actions.

Ministry of Justice

Implemented
— comments: As a result of joint work of the Ministry of Justice of Ukraine and the Notary Chamber of Ukraine, a generalization "Typical mistakes that occur during state registration of the rights to real estate and its encumbrances, as well as state registration of legal entities, individual entrepreneurs and public formations" was developed, which was presented on 06.12.2017 at the joint event of the Ministry and the Notary Chamber of Ukraine.
To include in the Draft Law No.6232 provisions which would: -Introduce amendments to the Administrative Procedural Code of Ukraine providing that the subject matter of the claims in the administrative proceedings cannot be demand to cancel or revoke the registration entries in the state registries, if enforcement of decision taken in such a case would directly result in the emergence, modification or termination of real rights or encumbrances.

Verkhovna Rada of Ukraine
Administration of the President of Ukraine

Implemented
— comments: In accordance with p. 3 of Art. 19 of the Code of Administrative Adjudication of Ukraine dated 07.01.2018, administrative courts do not consider claims that derive from claims in a private-law dispute and are filed therewith, if this dispute is subject to consideration other than as provided hereunder, and is being considered by the relevant court.
To include in the Draft Law No.6232 provisions which would:-Introduce amendments to the Civil Procedure Code of Ukraine and the Commercial Procedure Code of Ukraine, which would foresee that property owner, when applying to the court for the protection of his/her property right, can unite in a single claim several related claims due to be considered under the rules of different types of litigation, provided that a separate consideration of such claims by the courts of different jurisdictions would deprive him/her of efficient legal protection envisaged in Article 13 of the European Convention on Human Rights and Fundamental Freedoms.

Verkhovna Rada of Ukraine
Administration of the President of Ukraine

Implemented
— comments: According to para. 13 of Art. 20 of the Commercial Procedural Code of Ukraine, commercial courts shall consider cases in disputes arising in connection with the conduct of economic activity, in particular, claims for the registration of property and property rights, other registration actions, invalidation of acts violating rights to property (property rights), if such claims derive from a dispute regarding such property or property rights or a dispute deriving from corporate relations, if this dispute is subject to consideration in the commercial court and submitted thereto for consideration along with such claims;According to p. 12 of Art. 30 of the Commercial Procedural Code of Ukraine (exclusive jurisdiction), claims for registration of property and property rights and other registration actions, if consideration of such claims falls within the jurisdiction of the commercial court, are considered by the commercial court determined by the rules of jurisdiction of the dispute, the derivatives whereof such laims are.The Civil Procedural Code of Ukraine Para. 2 of p. 1 of Art. 19 of the Civil Procedural Code of Ukraine states that courts shall, in accordance with the procedure of civil proceedings, also consider claims for the registration of property and property rights and other registration actions, if such claims derive from a dispute regarding such property or property rights, if this dispute is subject to consideration in the local general court and referred thereto for consideration with such claims.According to p.8 of Art. 30 of the Civil Procedural Code of Ukraine (exclusive jurisdiction), the claims for registration of property and property rights, other registration actions are considered by a court determined according to the rules of jurisdiction of the dispute, the derivatives whereof such claims are.
To develop unified practical guidelines and methodologies to help the companies build and improve the reliable compliance systems. The Council emphasizes that such guidelines could be useful for businesses, if they cover the issues of best practices in the area of corporate governance; ensure a balanced allocation of authorities among managerial bodies of the company; propose optimal approaches to the development of internal policies/regulations (document signing/ initialization procedures, reporting policies, risk management, key performance indicators, etc.); disclose the essence of the procedures that determine the nature of violation associated with conflicts of interest as well as the mechanisms of ongoing control to detect violations, etc. Appropriate attention to those issues will help mitigate raidership risks.

National Agency on Corruption Prevention

Implemented
— comments: The Decision of the NACP dated 22.09.2017 No.734 approved the Methodical recommendations for the preparation and implementation of anti-corruption programs of legal entities.
To complete the implementation of the measures envisaged in the State Program for Implementation of the National AntiCorruption Policy for 2015-2017 in terms of addressing corruption in private sector. To ensure a sustainable effect, particular measures should also be reflected when developing the National Anti-Corruption Policy for subsequent years by the National Corruption Prevention Agency.

National Agency on Corruption Prevention

Implemented
— comments: According to the NACP's response to the Council's request (letter dated 19.03.2018 No.20-23/10304/18), the relevant measures have already been implemented.