Every country strives to build a fair and transparent taxation system that ensures a level playing field for business and promotes economic development, and Ukraine is no exception. However, in our country, tax authorities are often associated with corruption, pressure on entrepreneurs and abuse of power. Even with existing court rulings, law enforcement officers are in no hurry to investigate crimes committed by officials of the State Tax Service, UNN writes.
Probably, one of the main reasons why tax crimes remain without proper attention from law enforcement is corruption within the state apparatus and political influence. It is no secret that officials in various government agencies have common interests or financial ties, which makes it difficult to effectively investigate and punish officials. The absence of independent control leads to the fact that cases against tax officials are simply "merged" at the level of law enforcement agencies and do not reach the court.
It is possible that this is due to the patronage of the tax service, which, according to experts, is exercised by the chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, Danylo Hetmantsev. He not only determines the personnel policy of the State Tax Service through the hand-picked heads of the body, but also probably protects them from criminal prosecution, including sentences.
How else can we explain the fact that Yevhen Sokur, Hetmantsev's former assistant and now acting deputy head of the State Tax Service, systematically violates the law and has not been punished for it, as has the rest of the tax authority?
Systematic nature of violations
UNN previously reported that criminal proceedings were opened against Sokur on November 4, 2022 under Part 3 of Article 365 of the Criminal Code of Ukraine (abuse of power or authority). On October 26, 2022, the acting deputy head of the State Tax Service issued an order to revoke Ukrtatnafta's license to produce fuel. According to the investigation, his actions caused severe consequences for the company and the state in the form of the inability to fulfill the mobilization tasks of the Ministry of Defense for the production and supply of petroleum products for the needs of defense and defense capability of the state.
The Office of the Prosecutor General confirmed to UNN that investigators of the State Bureau of Investigation are investigating a case involving the acting deputy head of the State Tax Service of Ukraine, Yevhen Sokur.
Two years have passed since the opening of the criminal proceedings, but Sokur has not yet been brought to justice and continues to work in a managerial position.
Moreover, it turned out that this was not an isolated case and that the actions of the acting deputy head of the State Tax Service may be systematic. After all, according to of the decision of the Kyiv District Administrative Court, he also illegally revoked the license of the Chervonoslobidskyi Distillery.
The media do not rule out that Hetmantsev's protege is forcing businesses to pay for the tax authorities to allow them to operate.
Immunity of management
Experts point out that the tax service has become an instrument of pressure in the hands of Hetmantsev. In addition to revoking licenses under false pretenses, the STS also pressures entrepreneurs by blocking tax invoices and classifying them as risky. Business representatives regularly have to cancel illegal decisions of the STS in courts. However, no official has ever been held liable for forcibly stopping the operation of businesses in this way.
The authorities are not responding to the wave of indignationcaused by the actions of the tax authorities. And law enforcement officers are probably under orders not to touch the leadership of the State Tax Service. And it's not just that the security forces pretend to fight corruption, extortion and bribery on the ground, but in fact such cases have no logical conclusion. The investigation is not even trying to identify the participants in the entire chain of cash flow through the corridors of the tax office.
One example of the immunity of the State Tax Service is the court decision that ordered the State Bureau of Investigation to open a case against the tax authority's management for abuse of power and forgery of documents back in April.
It is also about the fact that officials of the State Tax Service of Ukraine, in particular the management, including the Central Interregional Department of the State Tax Service for Work with Large Taxpayers, used power or official position against the interests of the service, and also entered knowingly false information in an official document. In particular, we are talking about the results of the tax audit of Concord Bank, which is in the process of liquidation. Such actions of the tax authorities caused large losses to the shareholders of the financial institution.
The Pechersk District Court of Kyiv ordered the SBI to register the crime in the Unified Register of Pre-trial Investigations on April 11. However, despite the fact that the investigators were supposed to start the investigation immediately after that, the ball is still in the court's court.
That is, tax audits have become another effective tool for destroying businesses.
Will there be light at the end of the tunnel
Experts and MPs point out that this situation has become possible due to the lack of reforms and the need for a complete reboot of the tax service. Despite numerous promises and programs of reforming the tax service, in practice, no changes actually take place. Often announced reforms remain only on paper or are cosmetic in nature. Experts are convincedthat the lack of systemic changes contributes to the preservation of old corruption schemes and undermines confidence in the entire tax system.
Ignoring tax crimes has serious consequences for the economy and society as a whole. It undermines trust in government institutions, creates unfair conditions for doing business, and contributes to capital flight from the country. Small and medium-sized businesses, which are the backbone of economic growth, are particularly affected by tax burden and corruption, which hampers business development and reduces economic activity.
To overcome the current situation, it is necessary to implement real, not just decorative, reforms. First of all, we need independent control over the tax authorities and an effective system of punishment for corruption. Corrupt ties within the state apparatus need to be severed, transparency in decision-making needs to be ensured, and businesses need to be protected from undue pressure from tax authorities.
Only then will Ukraine be able to build a fair and efficient tax system that will promote economic development rather than hinder it.