TAX AND LABOUR INSPECTIONS FROM JULY 1, 2021

Tax law and disputes Labor law Corporate and commercial law

Let us recall that from July 1, 2021, inspections on registration of non-residents acting through their representative offices, will start with the tax authorities.

Subject matter: foreign representative offices (both permanent and non-profit) that were required to register their parent company with the tax authorities before May 19, 2021.
Type of audit: office, desk and field audits.
Possible sanctions: a fine of UAH 100,000, administrative seizure of the property of a non-resident (representative office), as well as payment of income tax liabilities (in case of revealing signs of a permanent representative office in a non-profit one).

In addition, the State Labour Service recently said that from July 1, 2021, it will start to inspect relatively undeclared employees along with the tax authorities.

Subject matter: employers with a significant number of service/work contracts with individuals.
Conditions of audit: any employer at any time with the right of the inspector's access to the premises, to official documents and to obtain explanations from employees.
Possible sanctions: an note of warning (for single tax payers of 1-3 groups) or a fine from UAH 60,000 to UAH 180,000 for every undeclared employee, as well as UAH 96,000 for not admitting an inspector.

Legal Alliance law firm is ready to help prevent negative consequences by assessing risks and providing recommendations for their mitigation. The qualifications and expertise of our team also make it possible to provide appropriate support in the conduct of relevant inspections and to appeal their results.

If you would like to get more information about these inspections, please contact Vitalii Savchuk, Counsel, Attorney-at-law at Legal Alliance, on the following details: +38 (095) 285 2462 or savchuk@l-a.com.ua.