Newly appointed Ukrainian Finance Minister Oleksandr Danylyuk announces his ministry has decided on several steps to introduce Controlled Foreign Company rules to prevent the shift of profits in preferential tax jurisdictions, or tax havens, and re-route funds back to Ukraine (the so-called `de-offshorization`).
”Pursuant to the president`s instructions, we`ve discussed `de-offshorization` steps. In particular, we plan to use the measures that were proposed by the OECD and that have proven to be effective,” he wrote on Facebook on Tuesday evening.
The ministry will work to ensure that Ukraine joins multilateral tax information exchange agreements, which will let the sides exchange financial accounting data and effectively prevent tax evasion.
What is more, the ministry plans a gradual review of bilateral agreements concluded by Ukraine with other countries to avoid double taxation in keeping with OECD principles.
Danylyuk says that only three agreements between Ukraine and other countries are in line with these principles.
The ministry will also work to polish the transfer pricing rules and related reporting requirements.
As UNIAN reported, Ukrainian President Petro Poroshenko wants that draft bills on `de-offshorization` in Ukraine be drawn up and tabled in parliament by June 1. International advisers and auditors are expected to be involved in this legislation process.
On April 18, the president approved the `de-offshorization` concept and called on the State Fiscal Service, the Finance Ministry, the Presidential Administration, and the Verkhovna Rada to take steps to end the practice of using offshore companies to minimize tax payment in Ukraine.
Top stories
Not only Russia. How populists destroy the greatness of the West Wednesday, October 4, 2023 - 06:27 (EEST)
-
