The National Agency on Corruption Prevention (NACP) and the State Tax Service (STS) of Ukraine continue to cooperate in exchanging information to ensure compliance with anti-corruption and tax legislation. In particular, the NACP ensures effective financial control over the accuracy of information in public officials’ asset declarations and informs the STS of Ukraine about identified facts of potential violations of tax legislation. Such measures encourage declarants to voluntarily pay taxes to the state budget or to do so compulsorily following decisions by the tax authorities.
During a full audit of the asset declaration of an official from the State Customs Service in the Khmelnytskyi region, it was established that funds from almost 800 individuals amounting to over UAH 1.4 million had been credited to the bank accounts of the official’s wife. At the same time, only UAH 112,000 in income from her entrepreneurial activities was declared. In response to an NACP inquiry, the declarant’s wife explained that during the reporting period, she had earned income as a sole proprietor amounting to UAH 112,000, which was reflected in her tax reporting. These explanations indicated that the declarant’s wife may have concealed other income from taxation, about which the NACP informed the STS.
Upon reviewing this notification, the STS confirmed that the declarant’s wife had violated tax legislation as a sole proprietor. She concealed income from taxation, including income from entrepreneurial activities, and failed to pay the corresponding amounts to the state budget.
Following the results of an unscheduled audit, the STS issued tax notices-decisions, which determined the wife’s tax liabilities at over UAH 309,000 (over UAH 274,000 in principal payments and over UAH 35,700 in penalties). In other words, the amount of the additional charges was almost three times the size of the declared income.
