The Business Ombudsman Council has outlined measures aimed at addressing the challenges surrounding tax audits

Between 2017 and 2021, an average of 74% of tax audits (excluding desk audits) resulted in the issuance of acts, a figure that surged to 85% in 2022–2023.

Over the span of seven years, the annual amount of additional charges escalated from UAH 34 billion in 2017 to UAH 90 billion in 2021, before tapering off to UAH 75 billion in 2023. However, the approval rates fluctuated between 23% (2021) and 64% (2017) during 2017–2023, while budget revenues ranged from 4% (2023) to 16% (2017).

These findings were presented by Business Ombudsman Roman Vashchuk during a discussion at the Media Center Ukraine – Ukrinform.

Drawing on these data, he elaborated that the issue may not solely rest with the State Tax Service but also with overloaded courts, burdened by repeated appeals and cassations from the State Tax Service.

Simultaneously, the Business Ombudsman Council advocates for specific measures to rectify and enhance the tax audit situation, potentially yielding significant positive outcomes.

To this end, the Council proposes the following initiatives:

– Upholding principles of equitable and judicious law enforcement;

– Enforcing the “Tax Advisory First” principle;

– Reinforcing the role of legal departments during tax audits;

– Implementing alternative dispute resolution mechanisms;

– Developing targeted and ambitious Key Performance Indicators (KPIs), particularly for evaluating litigation impacts;

– Enhancing transparency of information for taxpayers and the public;

– Establishing continuous feedback channels from entrepreneurs.

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