Is Hetmantsev's “White Business Club” an endorsement of corruption or a discredit to the market economy?
Kyiv • UNN
Ukraine has launched the White Business Club, which has drawn criticism from experts and businesses. The initiative is accused of creating discriminatory conditions and corruption risks.
The so-called White Business Club, an initiative of Danylo Hetmantsev, chairman of the Verkhovna Rada Committee on Finance, Taxation, and Customs Policy , has started working in Ukraine. This project has already caused a flurry of criticism among experts, the business community, and politicians. The reason is obvious: according to the plan, only certain companies can receive the "white" status and corresponding benefits, which directly contradicts the Constitution, the principles of a market economy and creates a field for corruption, UNN writes.
A separate website was created for the "White Business Club", which states that the first list of taxpayers with a high level of voluntary compliance with tax laws will be published on December 19. However, some entrepreneurs have already encountered problems and were not included in the "club of the chosen ones".
According to Anatoliy Amelin, a member of the Board of The Aspen Institute Kyiv and director of economic programs at the Ukrainian Institute for the Future, Hetmantsev's initiative discriminates against business. In addition, according to the economist, it provides opportunities for dividing entrepreneurs into those who are politically unwanted and those who are acceptable to the authorities.
"This is discrimination, this is discretion and this is a violation of the Constitution. According to the Constitution, everyone is equal before the law. This law creates conditions under which someone has preferences and a model that determines whether a company should be included in the White Business Club or not - they determine their performance there is better than the market average. But this is a market, this is a free economy - someone works better, someone works worse, and the idea itself is unconstitutional," Amelin said in a commentary to UNN.
He also emphasizes that such initiatives destroy economic freedom and scare away Western investors. According to him, no other country in the world has such a club of the elite.
"The very existence of such a law in Ukraine defames the free economy and the Ukrainian investment climate in general... Western companies that can choose which country to work in see these things and do not want to come here. I remind you that Ukraine ranks 150th in the ranking of economic freedoms, and these "clubs" are a kind of approved corruption. To get into this "club", will they take some kind of bribes? And you still have to prove that you need to get there. You don't even have to go there!" Amelin emphasized.
In his opinion, the M business association should go to court to repeal the law that introduced the "White Business Club" and the embassies of countries that provide financial support to Ukraine should be involved in this process.
Corrupt and discriminatory nature
The question of who will determine which companies will be included in the "White Business Club" is particularly outrageous. This task was entrusted to the acting deputy head of the State Tax Service of Ukraine, Yevhen Sokur, a former assistant to Hetmantsev. In business circles, he is called the MP's right-hand man, as it is alleged that Hetmantsev influences tax policy through him.
Sokur has previously been involved in scandals due to accusations of abuse of power and entering false data in declarations.
For example, criminal proceedings are being investigated against him for an official crime. This case was opened by the SBI on November 4, 2022, under Part 3 of Article 365 of the Criminal Code of Ukraine, on the fact of abuse of office by Sokur, who signed an order on October 26, 2022, to revoke Ukrtatnafta's license for fuel production. Such actions of the official, according to the investigation, caused serious 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 the state's defense capability. The State Bureau of Investigation informed UNN that this criminal proceeding is still under investigation.
In addition, the NACP monitors Yevhen Sokur's lifestyle. According to UNN, he probably entered inaccurate data in his declaration for 2023. In particular, he did not indicate in the document the information about his partner. Earlier, during the investigation into the alleged attempted assassination attempt, Sokur himself told law enforcement officers that since 2016 he had been living with a girl named Alina in an apartment at 6-D Lobanovskoho Avenue. Following a deputy appeal from Nina Yuzhanina, a member of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, the NACP launched an investigation into Yevhen Sokur . In response to a request from UNN, the Agency also confirmed that they are monitoring the official's lifestyle. Kateryna Butko, head of the Public Council at the NACP, noted that the National Agency for the Prevention of Corruption is checking whether Sokur and his partner Alina lived together.
Also, in 2022, he declared income from the sale of securities in the amount of UAH 2.6 million, but these funds were not reflected in his declaration for 2023. This may indicate a violation of the law requiring notification of significant changes in property status. According to Article 52 of the Law of Ukraine "On Prevention of Corruption," the declarant is obliged to report such changes within 10 days.
The involvement of an official with a dubious reputation further undermines the credibility of Hetmantsev's initiative. It looks as if a closed club for the "chosen ones" is being created, where only businesses loyal to the government will be entitled to benefits and preferences. And Hetmantsev and his loyal protege Sokur determine who will be included in the lists.
Unnecessary initiative
According to Nina Yuzhanina, a member of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, the creation of the White Business Club makes no economic sense, as Ukraine already has an Office of Large Taxpayers.
"Dividing all taxpayers with a high tax burden into some other categories, such as the 'White Business Club' and others, which is not clear, is a completely wrong step. After all, different types of business have different profitability, and therefore may have different tax burdens. It is not possible to level the playing field in any way. Because everyone has their own conditions, their own customers, their own opportunities. Someone fulfills a government order, someone works exclusively on the market, and if the market is also narrow, someone can work exclusively for export, or maybe someone is just looking for markets. How can we talk about measuring the average workload and equalizing payers accordingly? Especially since the Office of Large Taxpayers continues to exist and there is simply no other need," Yuzhanina said in a comment to UNN.
According to her, the criteria used to determine who will be included in the Club are already raising questions, particularly among farmers.
"Farmers already do not have the criteria to get into the White Business Club. Then who is it for? Nina Yuzhanina pointed out.
She is convinced that this innovation will not take root in Ukraine in the future.
It is worth noting that the creation of the "White Business Club" is a wake – up call for all those who believe in a free economy and equality before the law. If this initiative is allowed to exist, it will set a dangerous precedent that will undermine confidence in the state both within the country and in the international arena.
Recall
The Verkhovna Rada of Ukraine has passed the scandalous draft law on the "white business club" by the head of the parliament's tax committee, Danylo Hetmantsev. The document was criticized by both Mr. Hetmantsev's colleagues in parliament and experts. Even legal opinions stated that it did not comply with Ukrainian legislation. In addition, the creation of the "white business club" in Ukraine was the first anti-reform in a long time .
In their comments to UNN , economic experts pointed out that the document violates the Constitution of Ukraine and creates discriminatory conditions in the business environment.
The fact that Hetmantsev's draft law contains discriminatory norms and has corruption risks, is also stated in the conclusion of analysts of the Union of Ukrainian Entrepreneurs.
Business Ombudsman Roman Vashchuk also stated that the bill on the "White Business Club" is discriminatory.
