Unscheduled tax audits are resumed, and particular deadlines are reinstated according to the Law No. 8045

The Law of Ukraine No. 8045 dated 3 November 2022 (the “Law”) introducing a number of amendments to the Tax Code of Ukraine (the “TCU”) came into effect on 25 November.

In particular, the following unscheduled tax audits are resumed for the period until martial law is terminated or cancelled in Ukraine:

• transfer pricing (“TP”) audits in case of: failing to file the reports under clause 39.4 of the TCU (subclause 78.1.2 of the TCU); receiving evidence of non-compliance of controlled transactions (the “CT”) with the arm's length basis (subclause 78.1.14 of the TCU); failing to file or non-compliant filing of the CT Report and/or TP Documentation (subclause 78.1.15 of the TCU); receiving the CT Report by tax authorities (subclause 78.1.16 of the TCU). 
• audits resulting from consideration of the objections to the audit report or the complaint against the tax notification-decision  where the taxpayer refers to any circumstances not examined during the audit (subclause 78.1.5 of the TCU); in case the State Tax Service of Ukraine establishes non-compliance of the conclusions in the audit report with law or incomplete scope of matters addressed during the audit (subclause 78.1.12 of the TCU); in case if tax authority received information and/or documents from foreign state authorities, relating to matters covered during previous audits of the taxpayer, that indicate a violation of the law requirements by such taxpayer (subclause 78.1.21 of the TCU); in response to any information that becomes available and provides evidence of a non-resident's business through the permanent establishment in Ukraine without appropriate tax registration (subclause 78.1.22 of the TCU); relating to taxation of legal entities or other non-residents conducting business activities through a permanent establishment in Ukraine, income generated by non-residents and originating from Ukraine and/or unscheduled tax audits of non-residents (permanent establishments of non-residents).
• unscheduled audits under subclauses 78.1.5, 78.1.12, 78.1.14-78.1.16 of the TCU started and not completed until 24 February 2022 are also resumed for the unutilised outstanding period.

Responsibility under the TCU (including the responsibility for ongoing violations committed before 25 November 2022) will apply for taxpayers starting from 25 November 2022 as a result of the above audits for any non-compliance identified. In this case, the moratorium on financial penalties/fines for the duration of martial law, the state of emergency and/or quarantine does not apply.

In addition, the following deadlines have been reinstated until martial law is terminated or cancelled in Ukraine:

• deadline for submission of reports and/or documents (notifications) under Articles 39 and 39-2 of the TCU (in particular, the TP Documentation and/or Global Documentation (Master File) requested by the State Tax Service of Ukraine under Article 39 of the TCU, as well as the CT Report, the Notification of participation in International Group of Companies, the Country-by-Country Report).
• deadline for decision made by the State Tax Service of Ukraine as a result of the consideration of the taxpayer’s complaint against the tax notification-decision.

Our team continues following legal developments and is prepared to advise should you have any further questions.