Opinion: Procedure of tax clarifications in draft Tax Code hard to apply
Kyiv. June 30, 2010
The provisions of the draft Tax Code stipulate no binding nature of enforcement by taxpayers of tax and customs clarifications, and contradictions in practices of imposition of value-added tax (VAT) on export of services could trigger forfeit of price competitiveness of Ukrainian service suppliers on world markets, suggest the lawyers interrogated by Interfax-Ukraine.
"The draft Tax Code sets out that tax consultations and tax clarifications given by controlling authorities under the proper procedure are not binding for taxpayers. As such, a taxpayer is not obliged to fulfill and put them into practice", reported Associate of Volkov Koziakov & Partners Ruslan Malinovskyi.
According to him, the draft of new Tax Code contains new procedure for the state tax and customs services to provide tax consultations and clarifications on the issues of practical application of certain provisions of the tax or another legislation, the enforcement of which shall be controlled by these authorities. In case where a taxpayer dissents from tax clarifications, such clarifications may be challenged in a judicial procedure.
At that, as Mr. Malinivskyi pointed out, consultations and clarifications are not legal acts by their nature so may not be appealed through the courts.
"In practice one may appeal to the court only with decisions and actions of tax or customs authorities, which entail respective legal consequences", explained the Associate.
Mr. Malinovskyi believes that without detailed determination of the procedure of provision of the said clarifications and clearer wording of the provisions stipulating the practical application of such clarifications one may witness the confusion, conflict of interests of different structures, or the procedure will no go...