Oleksandr Klymenko Official website
News | 1259 | 06.05.2016

Oleksandr Klymenko explained how to win the offshore

The measures on de-offshoring, which were suggested by President Poroshenko, will have no effect. There is a strong need for more profound changes. In order to stop the withdrawal of assets from the country and to form profit point in Ukraine, it is necessary to improve the business climate in the country and return to the Law On transfer pricing in 2013. Such opinion was expressed by Oleksandr Klymenko, the leader of the “Uspіshna Kraina” party, in analytical article on his official website.

«Offshores of presidential corporation Roshen – it is just the tip of the iceberg. It does not matter is it legally registered or not. The most important thing is that even the President is not sure that Ukraine will be safe. He is afraid of the system, which he leads», – the politician said. According to Klymenko, the whole structure of Ukrainian economy is a mirror of discrimination on material grounds. Due to offshore schemes oligarchs can pay less taxes (in percentage proportion) than small-sized entrepreneur or employer, for instance. They actively use this possibility.

The scale of withdrawal of assets from the country can be demonstrated by the following figures: by January 1, 2016 Cyprus ($ 11.7 billion) and the Netherlands ($ 5.6 billion) became the largest investors into Ukrainian economy. “It is clear that it is not foreign money. It comes about the assets, which were previously derived. These two figures provide an understanding on scale of the withdrawal of funds “, – the leader of the “Uspіshna Kraina” party stated.

According to the politician, those, who are the part of the problem, are not able to solve it. “In fact, it is a classic dilemma “bees against honey”, – Oleksandr Klymenko said. He believes that the second reason is in fact that offshore companies and other schemes – are, primarily, protests against unfair tax and regulatory policy. Entrepreneurs evade taxes, because full payment will make their enterprise unprofitable.

In addition, the politician thinks that integration into international mechanisms does not make real sense, if the “homework” is not done. “Accession to the Conventions without modification of the regulatory policy in the country – is a “visa-free” regime by Ukraine. Thus, there will be no direct refusal. However, we should not expect for the full participation too”, – Klymenko said.

The leader of the “Uspіshna Kraina” party emphasizes that there is a strong need for restoring the Law on transfer pricing, which was worked out by the Ministry of income and fees, and adopted in 2013 by the Verkhovna Rada. Before blurring of the provisions of the Law after the changing of government in 2014, it contained effective mechanisms for preventing underreporting of sums and withdrawal of profits in offshore and low-tax jurisdiction.
However, according to Oleksandr Klymenko, the most important thing is that the country requires creating a business climate that will make offshore partially or completely de trop. “A strong state does not put pressure on business. In successful and powerful state capital and assets are not withdrawn to foreign subsidiaries because strong state protects a property owner’s rights”- the politician summed up.

Link to source: Oleksandr Klymenko official website