UBA NEWS

3rd Polish Ukrainian Legal Day

The 3rd Polish Ukrainian Legal Day held on 18 September in Kiev, was organized by a group of Ukrainian and Polish law firms and supported by the International Bar Association, Ukrainian Bar Association and many other organizations. The participants gathered to discuss the present situation, opportunities and prospects for the development of Polish-Ukrainian cooperation in the context of Ukraine’s striving towards European integration. The aim of the 3rd Polish-Ukrainian Legal Day was to develop and strengthen cooperation between representatives of the legal communities in Poland and Ukraine. In light of the numerous efforts with applying anti-corruption measures in Ukraine the experience of implementation and enforcement of global anti-corruption standards in Poland, represented by Jan K. Dunin-Wąsowicz, associate of Hughes Hubbard & Reed, should be highlighted. Between 2005 and 2014 Poland rose from 70th to 35th position in the Corruption Perception Index of Transparency International. Such progress was attained by combining tailored B20-driven initiatives, multilateral treaties, regional efforts, effect of Acts with extraterritorial reach, influence of domestic policy and increased cooperation between enforcement agencies and Multilateral Development Banks. It is also worth noting the key legal changes in the business environment in Poland in 2014-2015, represented by Jan Jarmul, partner of Sołtysiński Kawecki & Szlęzak. In the first instance Mr. Jarmul mentioned the new On Facilitation of Conducting Business Activity Act, that provides deregulation policy, reduction of certain formal/administrative burdens, simplification of certain tax obligations, facilitation of access to financing; amendments to Commercial Companies Code and On National Court Register Act, that provides modifications relating to the foundation process of commercial companies, online registration of certain partnerships, improvement of the information exchange system between registry courts and various public authorities; new On Restructuring Act, that provides for IT-maintained register of bankruptcies and restructurings, practical adjustments to existing bankruptcy procedures; and other documents.  Furthermore, issues connected with the signing of the EU-Ukraine Association Agreement, the Polish perspective and experience as well as Ukrainian expectations were also discussed at the event.

IV UBA Tax Forum

To discuss the most burning issues of taxation, the UBA held its IV Tax Forum on 25 September 2015. To analyze current tax legislation and judicial practice as comprehensively as possible, the speakers included auditors, lawyers, judges and tax experts. Apart from the latest developments in international taxation and judicial practice, proposals on reforming tax legislation were discussed during one of the sessions.. Olena Makeeva, deputy ministry of the Ministry of Finance of Ukraine, made a report on the communication strategy developed on the basis of survey of industrial businesses in March 2015. In these days the Ministry is undergoing an inspection by the International Monetary Fund, whose aim is to ascertain how Ukraine is carrying out its duties, while tax reform is the second reason for the inspection. Amongst other things, the Ministry anticipates a review of the simplified taxation system and hopes for assistance from European partners in the education of small and medium businesses. Andrii Zhurzhii, member of Parliament, first deputy chairperson of the Verkhovna Rada of Ukraine Committee on Taxation and Customs Policy, stressed the importance of the State Fiscal Service of Ukraine reformation. Within the framework of such reform, the speaker proposed to do away with many regional centers of the SFSU and to provide small and medium business with the possibility to submit electronic declarations and to obtain regular consultations. Nelya Pryvalova, director of department of methodological work on taxation in SFSU, remarked that the SFSU does not support either an increase or decrease in tax rates. However, there are certain proposals regarding administration of taxes in SFSU. Ms. Pryvalova also spoke on implementation of procedure of tax mediation and reduction of quantity of tax inspections. Alexander Minin, senior partner of WTS Consulting, supposed that there are many taxes for business at present. The speaker emphasized the need to remember the common level of the tax burden for business, which does not have enough means for its development. During the speech he put forward the Estonian tax model in the capacity of tax reform and substantial decrease in the tax burden.