Ukrainians want to be given more opportunities to appeal tax decisions: government approves draft law

The Cabinet of Ministers has approved a bill that should significantly change the procedure for appealing tax authorities’ decisions and expand taxpayers’ rights. In particular, Ukrainians and businesses will be able to appeal not only tax authorities’ decisions, but also their actions or inaction.

This was reported by the Ministry of Finance of Ukraine.

The document should harmonize tax procedures with the Law “On Administrative Procedure” and improve mechanisms for protecting taxpayers in relations with regulatory authorities.

The changes are not yet in effect – the government has only approved the bill. The next stage should be its submission to the Verkhovna Rada.

Even the inaction of the tax authority will be able to be appealed

One of the key changes concerns the list of actions of tax authorities against which a taxpayer can file a complaint.

It is proposed to allow the appeal of:

decisions of tax authorities;
actions of officials;
inaction of tax authorities.

Previously, the Tax Code did not provide for the possibility of administrative appeal of actions and inaction in this format.

More time will be given for appeals

The bill also provides for an increase in the term for appealing most decisions of tax authorities.

Instead of the current 10 business days, the taxpayer will have 30 calendar days.

At the same time, the term for tax notices-decisions will remain unchanged – 10 business days.

A separate term will be established for complaints about the inaction of tax authorities. It will be possible to apply no later than six months from the day the taxpayer learned about the relevant inaction.

The procedure for filing a complaint will also change

Another important innovation is where exactly the complaint will need to be filed.

The bill provides that the taxpayer will file it with the tax authority that adopted the contested decision, and not directly with the higher-level authority.

Thus, the administrative appeal procedure should be brought into line with the general principles of administrative procedure.

The missed deadline can be renewed

The bill also provides for a mechanism for renewing the deadline for appeal if the payer missed it for a good reason.

The petition will need to be filed within 10 business days after the circumstances that prevented the timely filing have ceased.

At the same time, the deadline will apply – no later than one year from the date of the decision being appealed by the tax authority.

New guarantees have also been provided for SSC payers

Similar protection mechanisms are proposed to be extended to single social contribution payers.

In particular, this concerns the possibility of appealing decisions, actions and inaction, establishing clear deadlines for considering complaints, as well as regulating the mechanism for agreeing on the amount of the arrears in the event of a judicial appeal.

A separate procedure will apply to decisions in the areas of electronic communications and the circulation of excisable products – in particular fuel, alcohol and tobacco products. Such issues will be regulated in accordance with special legislation.

The Ministry of Finance called the changes European integration

The Ministry of Finance expects that the new rules will make tax administration more transparent and strengthen the opportunities for citizens and businesses to protect their rights in disputes with regulatory authorities.

“The changes align tax procedures with the general principles of administrative procedure and will significantly increase the efficiency and transparency of tax administration in Ukraine and improve mechanisms for protecting taxpayers’ rights in communication with regulatory authorities,” the Ministry of Finance noted.

The department also called the initiative a European integration step related to the adaptation of Ukrainian tax legislation to relevant standards and Ukraine’s obligations to the European Union.

The draft law is planned to be submitted to the Verkhovna Rada for consideration in the near future. Therefore, the described rules have not yet entered into force.