Since April 28, 2023, the norm of the Tax Code of Ukraine (Law No. 2970-IX) has been in force, which establishes the application of penalties for failure to provide or incomplete response to a tax request:

– if the request is related to the automatic exchange of information – 5 minimum wages established by law as of January 1 of the current year (UAH 33,500 in 2023) for each such fact;

– in all other cases – 1 minimum wage established by law as of January 1 of the current year (UAH 6,700 in 2023) for each such fact.

ADDITIONALLY! The same Law also provides for a change in the storage periods for primary accounting documents: from 3 to 5 years.

What to do if the request is not received?

If the taxpayer did not receive the tax request by mail for any reason, and he returned without delivery (expiration of the storage period, absence of the recipient, etc.), or received, but did not provide a response, this may be the basis for applying a fine.

Will there be a penalty if a response is provided but not on time?

According to paragraph 121.2 of the Tax Code of Ukraine, sanctions are provided for non-provision and provision of an incomplete response. Thus, if the answer is received later, this cannot be the basis for the imposition of penalties. But if such sanctions were imposed before the tax authority received your “late” response, the imposition of a fine would be lawful – for not providing a response (meaning in a timely manner).

We expect that appeals to the courts against the imposition of penalties will be relevant, since the legislation does not define clear criteria for when to consider a response complete or incomplete. However, the responsibility for providing an incomplete answer exists. Consequently, the tax authorities will subjectively determine at their own discretion whether there is a violation of the law or not. Of course, abuse should not be ruled out.

Do not forget that the norm of the TCU has not yet been excluded, according to which, if the request is made in violation of the requirements specified in par. 1-5, clause 73.3, article 73 of the TCU, the taxpayer is released from the obligation to provide a response to such a request.

So, ignoring the tax request is NOT NEEDED.

It is NEEDED to provide the received request to lawyers and specialists in tax law.

We are always ready to prepare a timely and professional response to your request, but in your interests, without violating the law and without applying any sanctions to you from government agencies.

For almost 15 years we have been working in the field of legal protection of business and we have a fairly experienced team of lawyers!