“White Business Club”: entrepreneurs ask to simplify the entrance. But not all of them
14 March 17:56
The EBA member companies have appealed to the Ministry of Finance of Ukraine, the State Tax Service of Ukraine, and the Parliamentary Committee on Finance, Taxation, and Customs Policy with a proposal to consider improving the criteria for enrollment in the White Business Club and introducing appropriate amendments to the Tax Code. This was reported by the Association, according to
In particular, they cited the results of the Tax Index survey, which show that 46% of the surveyed companies want to be included in the List of conscientious taxpayers and have comments on the selection criteria.
At the same time, the EBA also refers to the experience of a number of well-known companies from various sectors of the economy, including agriculture and telecommunications, which failed to be included in the List of Good Taxpayers due to imperfect criteria, despite a high level of compliance with tax culture and fulfillment of obligations to pay taxes and fees.
In view of this, the European Business Association considers it appropriate to finalize the current criteria, namely to introduce a number of amendments to the Tax Code, so that it would facilitate the inclusion of good faith taxpayers in the List.
What business representatives propose
The EBA proposes changes that should more clearly differentiate between single accidental or unintentional mistakes and intentional violations, and also proposes to change the criterion of the level of tax payment and use a weighted average instead of an arithmetic average.
The business also proposes to set an acceptable limit of 10% of incomplete payments, as even bona fide exporters may face untimely foreign currency payments.
Additionally, it is proposed to allow a one-time change in the main activity without losing the status of a good faith payer within 12 months, as companies may change their activities due to market conditions, restructuring, or changes in the economic situation.
The EBA business community is open to dialogue and is ready to join expert discussions and develop the necessary changes to ensure proper business conditions.
Not all businesses have welcomed the idea of an elite taxpayer club
Ruslan Kravchenko, head of the State Tax Service of Ukraine, said after a meeting, for example, with business representatives from Zhytomyr region, that at that meeting, entrepreneurs talked about shortcomings in the implementation of the Territory of High Tax Confidence project.
In particular, they expressed the opinion that “in times of war, business should not be divided into white and black, since each of them not only pays taxes but also creates jobs.”
By the way, the aforementioned EBA survey, according to which 46% of respondents want to be included in the list of companies with a high level of tax credibility, had other results: 43% of entrepreneurs surveyed by the EBA reported a neutral attitude to this initiative, another 35% have a negative attitude, and 16% have a positive attitude. At the same time, 48% of respondents tend to believe that not being included in the list will have a negative impact on their company.
The history of 24 companies from the privileged club raised questions
Opendatabot found that at the time of the full-scale invasion, 24 companies from the club had Russian owners. The study states that currently there is no official Russian trace in any of these businesses.
In this regard, OpenDataBot reminded that since the beginning of the full-scale war in Ukraine, there has been a moratorium on changing registration data in companies with Russian owners, except for a few cases clearly defined by law. Opendatabot has sent an appeal to the Ministry of Justice of Ukraine to check registration changes in such businesses.
Also, Opendatabot analyzed the companies included in the trusted list of the State Tax Service and identified representatives among them who are related to the sanctioned persons through joint business. For example, two companies belong to the Kozak brothers’ group, whose owners have ties to Viktor Medvedchuk’s group. The list also includes businesses that have ties to Alef Corporation, owned by Vadym Iermolaiev, and Burisma Group, whose owner is listed in the Corruption Register, etc.
As a reminder, the White Business Club was created on the initiative of Danylo Hetmantsev, chairman of the Parliamentary Committee on Finance, Taxation and Customs Policy.
In June last year, the Verkhovna Rada approved draft law No. 11084, which provided for the creation of a list of criteria that would include a company in the list of taxpayers with a high level of voluntary compliance with tax laws – the White Business Club.
At the end of 2024, the State Tax Service of Ukraine created the List of Taxpayers with a High Level of Voluntary Compliance with Tax Law.
Taxpayers included in the list receive benefits such as a moratorium on documentary audits (except for certain types), shorter timeframes for desk and documentary audits for budgetary refunds, and individual tax consultations within five calendar days.
In order to join the Club of Conscientious Taxpayers, you need to meet a number of requirements.
In mid-December last year, as MP Danylo Hetmantsev reported at the time, 8.2 thousand taxpaying companies were automatically included in the list. At the moment, almost the same number of “lucky” companies – 8,254 – can boast of membership in the White Business Club. Perhaps it is worth opening the doors wider.
