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Ukraine business ombudsman: Taxes, customs main problem for business

Ukraine business ombudsman: Taxes, customs main problem for business

 

 

KIEV: Ukraine’s State Fiscal Service responsible for the country’s taxes and customs – is causing the biggest headache for enterprises, Ukraine’s business ombudsman said in his council’s third 2017 quarterly report on Nov. 1.

Lithuanian-born Business Ombudsman of Ukraine Algirdas Semeta, who referees how fairly the government is treating businesses, says that 65 percent of the quarter’s 408 complaints were directed against the tax and customs state body. The actions of law enforcement agencies caused 12 percent, followed by state regulators and local authorities.

“The significant rise in (tax and customs) complaints is explained by how we received a large quantity of complaints about the blockage of tax invoices in the third quarter,” Semeta said. “They made up 40 percent of all complaints.”

Tax officials can block invoices if they suspect that a company’s financial dealings are fictitious. But this is also a way to manipulate businesses in delaying their operations and making them pay bribes. This year Semeta is receiving a growing number of complaints compared to last year, so far 909, which is at least 20 percent more.