Oleksandr Klymenko Official website
Digest | 1478 | 22.05.2014

Klymenko called on the government to make the process of VAT reimbursement by bonds as transparent as possible

Oleksandr Klymenko – ex-minister of Revenue and Duties of Ukraine – believes that in order to make the process of VAT refunds by bonds transparent and public, community should be ensured, which banks will be admitted to trading bonds; and the government should use this tool not to allow money to leave Ukraine. He wrote about it on his official Facebook page.

According to the former minister, the government has chosen the easiest and most obvious way to solve the problem of debts owed to a business for VAT refunds. Nowadays, this debt is about UAH 32 billion. “The issue of government bonds for VAT refunds – it is really right solution: business will receive at least some viable option to obtain working assets, banks will be able to generate a profit,” – he writes.

At the same time, Klymenko warns: «I call on the government to make this tool as transparent and public as possible, give business the ability to control in order not to turn this possibility against the business and not to cause damage to the state».

According to him, first of all, community should be ensured, which banks will be admitted to trading bonds. Klymenko believes that the compensation should be carried out in that bank, where the enterprise opened its account. At the same time, he notes that the issue bonds may be authorized only by a few banks that will obtain competitive advantages in the marketplace. “Thus, it would be logical for government to offer business to publish not only the list of companies, which have received a refund, but the banks that deal with the VAT-bonds in order to avoid any doubt in the transparency of the process, “- said the ex-minister.

In addition, Klymenko believes that the state is necessary to ensure that this tool is used by business for the withdrawal from Ukraine. According to him, there are plethora schemes of it. For instance, non-resident affiliates buy bonds with par value of UAH 100 at the lowest price, let’s say, for UAH 1, and then offer to buy back the same paper, but at face value. Thus, the ex-minister notes, here is a legitimate scheme of withdrawal of assets abroad without paying any taxes in Ukraine for Ukrainian resident. “Therefore, it should be provided a mechanism for cancellation of transactions in bonds of newly discovered circumstances – for instance, in accordance with the decision of the court”, – recommends the former Minister of revenue and duties​.

Meanwhile, Klymenko believes that it is necessary to postpone the release of VAT-bonds till the fall. According to him, the introduction of this tool without complex changes in the administration of VAT will not give a positive effect.

In addition, the credit, which was claimed for reimbursement, must be bona fide. If now it is started the issuing of VAT bonds, he notes, the rest of the enterprises claimed for reimbursement tax will grow exponentially.

“In general, this tool should be implemented after the simplification of VAT administration, and eliminating all loopholes to form a circuit of the loan. And, of course, to create the most transparent conditions with obligatory control mechanisms for the business “- sums up the ex-minister.

Link to source: Bigmir)net Finance

Photo: minrd.gov.ua