It will be easier for tax authorities to identify risky transactions in cash payments

30 December 2024 09:42

The State Tax Service, with the support of the EU4PFM project, has developed an Analytical System of Cash Registers Data Management System, which is designed to identify risky transactions in cash payments. This was announced by Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, according to [Kommersant].

According to the deputy, the analytical system makes it possible to

– quickly and fully obtain information on business entities that have registered cash registers and analyze data on settlement transactions conducted through cash registers

– timely identify and effectively manage tax risks, abnormal deviations in the amount of both individual settlement transactions and revenues grouped according to certain criteria;

– to introduce a high-quality automatic selection of taxpayers, based solely on the presence of risks, for actual audits;

– to inform the public about the general indicators of payments made by business entities through cash registers/PTRs;

– to create a framework for providing services to business entities that have registered cash registers/PTRs.

The analytical system of the cash registers will be put into commercial operation in the first quarter of 2025.

Previously [Komersant] reported earlier about another innovation in the State Tax Service, which, with the support of the EU4PFM fund, will implement a unique Big Data Transfer Pricing IT system to control foreign economic operations for compliance with transfer pricing rules. As explained by the State Tax Service, this system will help identify risky transactions used by multinational companies to transfer profits from Ukraine to low-tax jurisdictions.

What is a cash register?

A cash register is a registrar of payment transactions. This term in Ukrainian legislation defines a fiscal cash register as a means of state control over the circulation of non-cash and cash funds, accounting of goods, registration of services rendered and settlement transactions. The definition and use of cash registers is regulated by the Law of Ukraine “On the Use of Cash Registers in the Field of Trade, Catering and Services”.

A software-based cash register (PTR) is a software product that is installed on a smartphone, laptop, computer or tablet to generate electronic fiscal receipts and transmit registered sales to the tax authorities.

According to the Law of Ukraine No. 265/95, the obligation to use cash registers applies to almost all legal entities and individual entrepreneurs operating in the retail, public services, catering and accepting payments in cash, payment cards, etc.

Василевич Сергій

Editor