Online conference on administration and prevention of tax debt

122 billion hryvnias. This is the total tax debt amount currently recorded by the State Tax Service of Ukraine.

On November 6, 2020, at the ZOOM-conference, international experts and representatives of relevant structural units of the State Tax Service of Ukraine (Department of Tax Debt, Office of Large Taxpayers of the State Tax Service) discussed opportunities to improve administration and prevention of tax debt.

Online conference on administration and prevention of tax debt

Experts from the EU4PFM Programme, Ms. Vilma Vildjunaite (Lithuania) and Mr.. Rainer Osanyk (Estonia) shared their international experience with Ukrainian colleagues.

❓What factors allow effectively collecting tax debt and quickly reduce its accumulation? Measuring the level of tax discipline of taxpayers and developing measures to improve the relevant processes of each group of taxpayers:

  • A complex of “soft precautionary measures”: friendly communication with taxpayers, explanatory work on the accurate payment procedure of those who have difficulty understanding the relevant processes, notifications on the payment dates of relevant taxes.
  • A complex of “control measures”: maximum automation of tax debt administration processes, timely reminders of the debt and the obligation to pay, the introduction of installments to taxpayers from 12 to 36 months to repay tax debt, reduced interest on deferred debt.
  • A complex of “strict measures”: providing functions of the executive service to STSU to enable the rapid seizure of accounts of the debtor, criminal liability for refusal and evasion of tax debt, tax deposit for the most risky areas of activity (eg, trade).

The series of the discussions will be continued with another important topic on automation of exchange of information.