Tax officials will be able to monitor Ukrainians' trips abroad

The Border Guard and Tax Services will begin automatically exchanging information. The electronic exchange of information will allow tax officials to track Ukrainians' trips abroad, reports UNN with reference to the State Border Guard Service website. 

The agencies have already signed an agreement and a protocol on information interaction, which provide for automated electronic data exchange between the two agencies. The new mechanism is intended to speed up the processing of requests, reduce the volume of manual work, and strengthen counteraction to tax evasion schemes. The documents were signed by acting head of the State Border Guard Service Valeriy Vavrynyuk and head of the State Tax Service Lesya Karnaukh.

Why does the State Tax Service need this data? 

Information about crossing the border is used by the tax service in conjunction with other data in the following cases: 

1. Determination of tax residency: verification of the status of individuals (in particular, staying in Ukraine for more than 183 days during the year) for accurate calculation of tax liabilities and avoidance of double taxation. 
2. Prevention of fictitious transactions: detection of cases where financial and economic documents or enterprise reporting are signed by a manager who was actually outside Ukraine on the date of signing.  
3. Secure communication channel: the exchange takes place at the central level through the National Confidential Communication System. 
4. Targeted requests: each request is targeted and is formed exclusively for one person or one vehicle if there is a clear legal basis. 
5. Personalized access: each request is signed with a Qualified Electronic Signature (QES) of a specific State Tax Service official with an electronic timestamp. 
6. Full audit: all user actions are recorded in electronic audit logs, which completely excludes unauthorized or anonymous viewing of information. 

The tax service emphasized that such interaction does not in any way change the rules or duration of crossing the state border.  

Details

As explained by the agencies, previously service employees had to separately formulate requests, send them to another body, and manually process the received responses. This format required more time and created an additional burden on staff.

After the introduction of the automated system, the necessary information will be transmitted through secure electronic channels. This should allow the tax and border guard services to obtain data needed to exercise their powers more quickly.

The State Border Guard Service emphasized that the new procedure for information exchange does not provide for the expansion of the powers of any of the agencies. It also does not introduce additional checks or restrictions for citizens and does not change the rules for crossing the state border of Ukraine.

For Ukrainians, the procedure for undergoing border control itself will remain unchanged. It is primarily about the technical simplification of interaction between state bodies, which previously had the right to receive relevant information in cases provided for by law. Data exchange will be carried out only if there are grounds defined by legislation. Each request will be formulated by an authorized official and signed with a qualified electronic signature.

In addition, all actions of employees in the system will be recorded in audit logs. This will make it possible to track who, when, and on what basis requested or received certain information.

The State Border Guard Service and the State Tax Service also stated that technical and cryptographic means of protection will be used during data exchange. Information will be transmitted exclusively through secure information systems and within the framework of current legislation.

Acting head of the State Border Guard Service Valeriy Vavrynyuk noted that the digitalization of interagency interaction is one of the key areas of development of state institutions.

"Automated information exchange will significantly reduce the time for processing requests, increase the efficiency of both services, and ensure an appropriate level of information protection," he said.

For the border guard service, the new format will primarily mean a reduction in the volume of manual work. Employees will no longer have to separately process a large number of similar information requests, which should free up time for other tasks.

At the same time, the head of the State Tax Service, Lesia Karnaukh, stated that automatic access to the necessary information will help tax officials more quickly identify potential violations. According to her, this concerns, in particular, fictitious transactions, "gray" import and export schemes, as well as attempts to evade tax payments.

"Now the State Tax Service will be able to detect fictitious transactions, 'gray' import or export schemes, tax evasion schemes even faster, and more accurately determine tax residency. In essence, we will more effectively counter the shadow economy," Karnaukh said.

Overall, the agencies expect that the automation of data exchange will speed up interaction between services, reduce the bureaucratic burden, and make control over potential economic violations more effective.

Reminder

The Cabinet of Ministers approved a draft law to increase the number of the State Border Guard Service by 15,000 people within a year after the end or cancellation of martial law in Ukraine.