CURRENT PROBLEMS OF EXCLUSION FROM THE REGISTER OF SINGLE TAX PAYERS

Author
, Doctor of Legal Sciences, Professor, head of the Department of Financial Law, Ukraine, Kharkiv
, Lawyer, postgraduate student of the Department of Financial Law, Ukraine, Kharkiv

In heading

 Law;

Signed print

 19.12.2024

Issues number

 2024 - №4 (59)

Page

 39-57

Type of articles

 Scientific article

Code UDK

 351.713:336.225

ISSN print

 2411-5584

Abstract

 Problem setting. The acquisition of the status of a single tax payer and its loss (deprivation) depend on the circumstances specified by tax legislation. The specified circumstances consist of compliance (acquisition of status) and non-compliance (loss/deprivation of status) by the taxpayer with the requirements established by the Tax Code of Ukraine, and their occurrence is primarily determined by the independent decision of the taxpayer himself.
Recent research and publication analysis. Issues of tax administration, proper implementation of tax procedures by controlling authorities, tax evasion, and problems of a simplified system of taxation, accounting and reporting, and in particular, those which related to the inclusion/exclusion of taxpayers from the Register of Single Tax Payers by controlling authorities, are in the field of view of numerous scholars.
Paper objective. The purpose of the article is to analyze the procedure for excluding certain business entities from the Register of Single Tax Payers by controlling authorities with retroactive application (using the example of individual entrepreneurs who have the status of a single tax payer of the third group).
Paper main body. Exclusion from the Register of Single Tax Payers by the past date is a violation of the current tax legislation by the controlling bodies. Аnalysis of court decisions allows us to state that violation of the procedure for making a decision (act of individual action) as the act of inspection and as the decision to exclude from the Register of Single Tax Payers has the consequence of their illegality (illegality) and cancellation.
The presence of requirements to the controlling authority to send (deliver) to the taxpayer the inspection reports within the time period and method established by the Tax Code of Ukraine should retrospectively eradicate the illegal practice of exclusions from the Register. In addition, the specified duty is aimed at confirming that the taxpayer should not receive acts of individual action that adopted regarding him only upon his application to the controlling authority.
Conclusion of the research. Currently, the practice of retrospectively excluding taxpayers from the Register of Single Tax Payers is not uncommon, which violates the principles stipulated by the Constitution and the Tax Code of Ukraine. This primarily concerns such violations of tax procedures as: failure to notify the taxpayer of the audit and its results; failure to provide an opportunity to submit objections or explanations; failure to submit a tax claim; failure to comply with the deadlines for notifying taxpayers; deprivation of taxpayers of the right to appeal; etc.
Taxpayers in such circumstances may be accused of failure to fulfill obligations under the general taxation system, despite the fact that they acted in accordance with the status indicated in the official data of the Register. At the same time, this circumstance cannot indicate that such taxpayers evaded paying taxes in accordance with Article 212 of the Criminal Code of Ukraine.
Short Abstract for an article
Abstract. The problems of retrospective exclusion from the register of single tax payers from the standpoint of the principles of legality, certainty and legitimate expectations of taxpayers, specifically, individual entrepreneurs who have chosen a simplified system of taxation, accounting and reporting, are analyzed in the article. It is stated that the exclusion of individual entrepreneurs from the register of single tax payers «retroactively» may create a false impression of their tax evasion. At the same time, this phenomenon has signs of excess of authority of controlling authorities, which violate tax procedures
established by law, which leads to inefficient administration of taxes and fees.
The grounds, conditions and procedures for acquiring, maintaining and losing the status of a single tax payer are indicated. The grounds for losing the status of a single tax payer in accordance with the provisions of the Tax Code of Ukraine include: voluntary transition to the general taxation system, termination of business activities, existence of tax debt, violation of the terms of the simplified taxation system, etc. Taking into account judicial practice, typical violations of tax procedures by controlling authorities are given, among which are: failure to send tax claims, failure to submit inspection reports within the established deadlines, deprivation of taxpayers’ right to submit objections and explanations, as well as making relevant decisions without following procedures.
Taking into account the analysis of practical examples and court decisions, it is proven that the exclusion of a single tax payer by a controlling body with retroactive effect is illegal and contradicts the principles of legal certainty, legality and the rule of law. The necessity of compliance with the legislatively defined rules of tax administration by controlling bodies, and the importance of ensuring transparency, predictability and legality of decisions of controlling bodies are stated. Ways of improving tax procedures in order to protect the rights of taxpayers are proposed.

Keywords

 controlling authorities, tax evasion, tax procedures, administration of taxes and fees, legitimate expectations, principle of certainty, general taxation system, tax burden, protection of taxpayers’ rights.

Reviewer

External reviewer

Article in PDF

 Economic Theory and Law, 2024-4-39-57

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Code DOI

 https://doi.org/10.31359/2411-5584-2024-59-4-39

This post is also available in: Ukrainian

19.12.2024