Finance Ministry seeking to overhaul tax collection agency
The Ukrainian Finance Ministry said the State Fiscal Service can do a better job collecting taxes, especially among those who have not been paying what they owe.
“Only about 4 percent of the State Fiscal Service of Ukraine staff is involved in debt recovery, while in major economies its usually 13 percent,” according to Finance Minister Oleksandr Danyliuk, whose ministry oversees the State Fiscal Service responsible for tax collec- tion and customs service.
The Finance Ministry, in a statement published online on Sept. 4, said it would make changes with the help of international consultants in improving debt collection. More than $2 billion in back taxes is owed to Ukraine — amounting to roughly 3 percent of annual national state spending.
Debt collectors will focus resources on those most able and likely to pay. “Also, we are going to develop the strategy to classify the debtors depending on their segment,” the ministry’s press service told the Kyiv Post.
The ministry and the State Fiscal Service are going to split up deadbeats taxpayers into several groups: priority debtors (most important in terms of debt size and important for economy); active debtors (debtors who are highly likely to pay their debt voluntarily); usual debtors; bad debtors (those with the big debt, no assets and other inactivity).
“The developed initiatives also include the launch of a special unit to contact active debtors as well as to create a centralized ‘bad debt’ department,” the ministry said.