tax-audit-of-concord-bank-a-year-of-delays-and-questionable-objectivity

Tax audit of Concord Bank: a year of delays and questionable objectivity

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The tax audit of Concord Bank, which is in the process of liquidation, has been going on for over a year and has not yet been completed. This delay raises serious questions about the transparency and objectivity of the tax authorities' actions, as well as suspicions of possible abuse of office. It is possible that the tax authorities are deliberately delaying the tax audit in order to avoid liability in the future, UNN writes.

On August 1, 2023, the National Bank of Ukraine (NBU) decided to revoke the license of Concord Bank and start the liquidation procedure. According to the law, this process involves a mandatory tax audit, which usually lasts several months. However, in the case of Concorde, the tax audit has already dragged on for more than a year.

The first tax audit was completed in three months and resulted in a small fine of UAH 700,000. However, according to Olena Sosiedka, co-owner of the bank, the chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, Danylo Hetmantsev, intervened in the process and demanded a significant increase in the fine to almost UAH 400 million. This change became the basis for accusations of falsification of the audit results by the tax authorities.

"We know that the first tax audit resulted in an act worth UAH 700 thousand. However, on Hetmantsev's personal instructions, another 392 million hryvnias were illegally added to this act. This raises the question: why not a billion or even 10 billion? The absurdity of the situation is obvious," Olena Sosiedka noted .

After submitting objections to the audit report, the bank's liquidator, appointed by the Deposit Guarantee Fund (DGF), ordered an additional tax audit. It is still ongoing, which creates the impression of deliberate delay on the part of the tax authorities, as such audits usually last no more than a few months.

Lawyers interviewed by UNN emphasize that the long delay may be evidence of the tax authorities' fears of possible liability for falsifying the results of the first audit. 

If the court finds that the tax was unjustified, it may recover court costs, legal fees and non-pecuniary damage from the tax authority. Employees may be subject to disciplinary measures

- said Denys Neviadomskyi, President of the All-Ukrainian Association of Retired Judges.

Attorney Oleksandr Baidyk adds that tax officials can be held liable under the Criminal Code of Ukraine: "If the falsification of documents was deliberate, it is criminal liability, but if it was just a mistake, it is administrative liability. It all depends on the damage caused.

According to many experts, the only effective way to force the tax authorities to complete the audit is to go to court, which can order the tax authorities to act within a reasonable timeframe and ensure transparency of the process. This will not only speed up the liquidation of the bank, but will also set an important precedent in the fight for transparency in Ukraine's tax system.

"There should be a rule of law procedure. If the tax authorities violate the law, interested parties have the right to go to court. This is the only tool in our realities, as prosecutorial supervision has been abolished," said former Deputy Prosecutor General Oleksiy Bahanets.

However, he added that even a trial could be delayed due to the overload of Ukrainian courts and the lack of judges, which makes this a long and complicated process.

At the same time, the delay in the tax audit of Concorde Bank is an alarming signal for Ukrainian business and the banking system. It not only slows down the process of liquidation of the institution, but also undermines confidence in the tax system in general. After all, transparent and objective actions by tax authorities are key to ensuring the stability and development of the country's economy.

Against the backdrop of Russia's war against Ukraine and financial instability, such situations create additional tension and cause distrust in government institutions. Only timely action and transparent decisions can help remedy the situation and prevent further abuses in the tax area.

It is worth noting that Concorde's shareholders appealed the NBU's decision to withdraw the bank from the market, and the Dnipropetrovs'k District Administrative Court found the revocation of Concorde's banking license to be illegal and revoked it. However, the liquidation process, once started, cannot be stopped under the current legislation. Even if the courts find the regulator's actions unlawful, the bank will still be withdrawn from the market, which only confirms the imperfection of Ukrainian legislation.

Lilia Podolyak

Economy

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