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Continuation of the moratorium on tax audits of a business

From August to December 2014, in order to promote the development of the national economy and create favorable conditions for doing business in Ukraine, a moratorium was introduced on conducting inspections of entrepreneurs by regulatory authorities (Article 31 of the Law of Ukraine “On the State Budget of Ukraine for 2014”).

The Law of Ukraine No. 76-VIII “On Amending and Deprecated of Some Legislative Acts of Ukraine” dated 12.28.2014 introduced a similar moratorium and established that inspections of enterprises, institutions and organizations, and individual entrepreneurs by regulatory bodies (except for the state fiscal services of Ukraine and the State Financial Inspection of Ukraine) are carried out during January-June 2015 exclusively with the permission of the Cabinet of Ministers of Ukraine or at the request of the enterprise upon its verification (paragraph 8 of the section “Transitional sexes” zheniya “). The Act, except for certain provisions came into force on 01.01.2015, at a moratorium is set to 01/07/2015, the

The Government of Ukraine agreed on a draft law of Ukraine “On restrictions on conducting audits in the field of economic activity” on June 24, 2015, introduced by the Ministry of Economic Development and Trade of Ukraine, which extended the moratorium on business inspections until the end of 2016.

Such an extension of the moratorium by another 1.5 years in passing indicates that since August 2014, since then the moratorium was first legally applied, the government at the end was unable to reform the system of state supervision and control, and given the period of extension of the moratorium , measured himself another 1.5 years for reform activities in this area.

The public assessment of the bill itself, which extends the effect of the moratorium, is rather ambiguous, because, on the one hand, entrepreneurs favored such legal restrictions, because, given the prevailing principles of inspections of business entities by state bodies, such a moratorium ultimately eases the pressure on business, In addition, there are criticisms from the public on the decision of the government.

Thus, the absence of long-term control in the areas that fall under its influence, and this: ensuring sanitary and epidemic well-being of the population, food safety and quality, consumer protection, environmental and radiation safety, safety issues in land transport and market surveillance, can conditionally lead to the manifestation of numerous violations in these areas.

For example, the introduction of a moratorium of the current edition is contrary to the provisions of Part 3 of Art. 42 of the Constitution of Ukraine, it is clearly stipulated that the state protects the rights of consumers, monitors the quality and safety of products and all types of services and works, and promotes the activities of public consumer organizations. Before the moratorium came into effect, consumers were not happy about the practical implementation of the protection of their rights, based on the provisions of the Constitution of Ukraine and the Law of Ukraine “On Protection of Consumer Rights,” and in today’s conditions this is a tiny possibility, as the state actually eliminates itself from fulfilling tasks, which are fundamental and laid down by the Basic Law of Ukraine, and the population is powerless in protecting their rights and overcoming obvious violations in the field of trade, work and services. “According to the results of 2014 and the 1st quarter of 2015, we can state a massive violation of consumer rights in Ukraine. In 2014, the State Consumer Inspectorate received 24,411 appeals from citizens, and in January-March 2015 alone – more than 5 thousand. The appeals relate primarily to the quality of food products, as well as services, which make up the lion’s share of Ukrainian expenses, ”says Andrey Skipalsky, chairman of the Center civil representation “Life”.

The opinion of the leading expert of the Tax Reform group, the resuscitation reform package, Ilya NESKHODOVSKY, that “… the moratorium should be extended, is convenient. And you need to protect the market and consumers from counterfeit products and substandard goods. It’s virtually impossible for consumers to defend themselves during the total ban on inspections. ”

According to Volodymyr Balin, First Deputy Chairman of the Ukrtransinspektsion, “… The moratorium on conducting state control measures significantly worsened the accident rates on Ukrainian roads with the participation of licensed road transport. So, during the second half of last year, compared with the same period in 2013, the number of deaths increased by almost 35%, and the number of injured by 20%. ”

In such situations, it is quite difficult to trace a direct causal link between the introduction of a moratorium on inspections and an increase in violations in the areas that fall under it, however, statistical data report a trend towards an increase in abuse by business entities.

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