Law of Ukraine No. 71-VIII “On Amendments to the Tax Code of Ukraine and Some Other Ukrainian Laws Concerning Tax Reform” dated December 28, 2014 (the “Law”) came into force on January 1, 2015. Among other things, this Law imposes certain restrictions on audits to be performed by controlling authorities in 2015 and 2016.

I.          AUDITS SUBJECT TO THE RESTRICTIONS

In 2015 and 2016, controlling authorities may audit operations of legal entities and individual entrepreneurs with an income of under UAH 20 million for the preceding calendar year only:

1. under authorization from the Cabinet of Ministers of Ukraine;
2. upon an application for an audit from a business entity;
3. under a court ruling;
4. in line with requirements of the Criminal Procedure Code of Ukraine;
5. provided that such audits are performed to check compliance by business entities importing, producing or selling excisable goods with law requirements in terms of the availability of licenses, the completeness of accrual calculations and payments of the individual income tax, the flat-rate social security contribution, and VAT refunds;
6. starting from July 1, 2015, provided that such audits are performed to check compliance by flat-rate tax payers of the second and third (individual entrepreneurs) groups with the procedure for use of cash registers in certain types of retail trade.

IІ.         AUDITS PERMITTED WITHOUT RESTRICTIONS

In 2015, all controlling authorities may audit, without any restrictions, legal entities and individual entrepreneurs with an income of UAH 20 million and more for the preceding calendar year. If your company has such income indicators, you cannot benefit from the restrictions imposed on audits by the said Law.

 ІІІ.         OUR SERVICES

 Our lawyers and attorneys have extensive experience in protecting companies’ interests in the context of audits by tax authorities, bodies of the State Inspectorate for Consumer Rights Protection, law enforcement and other controlling authorities. We have long-standing experience in handling litigation cases challenging decisions, acts and omissions of government authorities, in particular in connection with the imposition of fines, other financial sanctions, bans on the sale of goods, etc.