Ukraine's tax service has come under scrutiny for systematic violations of the law that appear to have led to no serious consequences for its leadership. Experts and civil society activists point to political influence and corruption ties as the main reasons that ensure the immunity and impunity of tax officials.
Every country strives to build a fair and transparent taxation system that provides equal conditions for business and promotes economic development, and Ukraine is no exception. However, in our country, tax authorities are often associated with corruption, pressure on entrepreneurs and abuse of power. Even with existing court decisions, law enforcement agencies are in no hurry to investigate crimes committed by officials of the State Tax Service.
Probably one of the main reasons why tax crimes go undetected by law enforcement is corruption within the state apparatus and political influence. It is no secret that officials in different government agencies have common interests or financial ties, which complicates effective investigation and punishment of officials. The lack of independent control leads to the fact that cases against tax officials simply “merge” at the level of law enforcement agencies and do not reach the court.
It is possible that this is happening due to the patronage of the tax service, which, according to experts, is exercised by the chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev. He not only determines the personnel policy of the State Tax Service through the hands of the agency's managers, but also probably protects them from criminal prosecution, in particular, convictions.
Otherwise, how can we explain the fact that Hetmantsev's former assistant, and now acting deputy head of the State Tax Service, Yevheniy Sokur, systematically violates the law and has not yet been punished for it, like the rest of the tax service's management?
Systematicity of violations
UNN previously reported that on November 4, 2022, criminal proceedings were opened against Sokur under Part 3 of Article 365 of the Criminal Code of Ukraine (abuse of power or official authority). On October 26, 2022, the Acting Deputy Head of the State Tax Service issued an order to cancel the license of PJSC “Ukrtatnafta” for the production of fuel. According to the investigation, his actions caused serious consequences for the company, as well as for the state in the form of the impossibility of fulfilling the mobilization tasks of the Ministry of Defense for the production and supply of petroleum products for the needs of defense and the defense capability of the state.
The Prosecutor General's Office confirmed that investigators from the State Bureau of Investigation are investigating a case involving the acting deputy head of the State Tax Service of Ukraine, Yevheniy Sokur.
Two years have passed since the criminal proceedings were opened, but Sokur has still not been brought to justice and continues to work in a managerial position.
Moreover, it turned out that this is not an isolated case and the actions of the acting deputy head of the State Tax Service may be systematic. After all, according to the decision of the Kyiv District Administrative Court, he also illegally deprived the license of the Chervonoslobodsky Distillery.
The media does not rule out that in this way Hetmantsev's protege is forcing businesses to pay for the tax office to allow him to operate.
Management immunity
Experts point out that the tax has become a tool of pressure in the hands of Hetmantsev. In addition to depriving businesses of licenses under far-fetched pretexts, the State Tax Service also puts pressure on entrepreneurs by blocking tax invoices and classifying them as risky. Business representatives regularly have to cancel illegal State Tax Service decisions in courts. However, no official has yet been held accountable for forcibly stopping the work of enterprises in this way.
The authorities are not responding to the wave of indignation caused by the actions of tax officials. And law enforcement officers are probably instructed not to touch the management of the State Tax Service. And this is not only about the fact that the security forces pretend to fight corruption, extortion and bribery on the ground, but in fact such cases do not have a logical conclusion. The investigation is not even trying to identify the participants in the entire chain of cash movement through the tax corridors.
One example of the immunity of the State Tax Service is a court decision that ordered the State Bureau of Investigation back in April to open a case against the tax authority's leadership for abuse of authority and forgery of documents.
It is also about the fact that officials of the State Tax Service of Ukraine, in particular the leadership, including the Central Interregional Department of the State Tax Service for Work with Large Taxpayers, used their power or official position contrary to the interests of the service, and also entered knowingly false information into an official document. This is, in particular, about the results of a tax audit of Concord Bank, which is in the process of liquidation. Such actions of the tax service caused large losses to the shareholders of the financial institution.
The Pechersky District Court of Kyiv ordered the State Bureau of Investigation to enter information about the crime into the Unified Register of Pre-Trial Investigations on April 11. However, despite the fact that the investigators were supposed to begin the investigation immediately after that, the visa is still there.
That is, tax audits have become another effective tool for destroying businesses.
Will there be light at the end of the tunnel?
Experts and MPs point out that this situation has become possible due to the lack of reforms and the need for a complete reboot of the tax service. Despite numerous promises and programs to reform the tax service, in practice, changes do not actually occur. Often, the announced reforms remain only on paper or are cosmetic in nature. Experts are convinced that the lack of systemic changes contributes to the preservation of old corruption schemes and undermines trust in the entire tax system.
Ignoring tax crimes has serious consequences for the economy and society as a whole. It undermines trust in state institutions, creates unfair conditions for doing business, and contributes to the outflow of capital from the country. Small and medium-sized businesses, which are the basis of economic growth, are particularly affected by tax pressure and corruption, which complicates the development of entrepreneurship and reduces the level of economic activity.
To overcome the current situation, it is necessary to implement real, not decorative, reforms. First of all, independent control over the activities of tax authorities is needed, as well as an effective system of punishment for corrupt actions. It is necessary to break corruption ties within the state apparatus, ensure transparency in decision-making, and protect business from undue pressure from tax authorities.
Only then will Ukraine be able to build a fair and effective tax system that will promote economic development, not hinder it.
