Fi­nance Min­istry seek­ing to over­haul tax col­lec­tion agency

Kyiv Post - - Business Focus - BY VERONIKA MELKOZEROVA MELKOZEROVA@KYIVPOST.COM

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.

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