Lawyer blog - Finance Business Service

Main Aspects of Automatic Exchange of Financial Information under the CRS

Published: 27/07/2018 | blog

Tags:

#Banks #Business #Confidentiality #Exchange of tax information #Legislation #Tax planning #Tax reporting #Taxation #Ukraine

In September 2017, a significant event for financial institutions around the world took place - the first automatic exchange of information for tax purposes in accordance with the CRS (Common Reporting Standard). The source of information exchange were banks, as well as other financial institutions (pension funds, investment and insurance companies, etc.). The second large group of countries is also joining the process of automatic information exchange in 2018. CRS provides for an annual automatic exchange of tax information between Member States of the Multilateral Cooperation Convention between the competent authorities on automatic information exchange under the CRS (MCAA Convention). The exchange of information on accounts of legal entities and natural persons will be made automatically, annually and on the principle of residency (in contrast to the FATCA law, which uses the principle of citizenship). The essence of the exchange is that banks collect information on financial activities on corporate accounts of the companies, individual accounts of natural persons, private funds and trusts, and then transfer it to the tax authorities of their country, which send this...

Authorized Capital of LLC: What You Need to Know

Published: 11/05/2018 | blog

Tags:

#Tax disputes #Ukraine

Finance Business Service reminds that on 17.06.2018 the Law of Ukraine “On Limited Liability Companies” will come into force. Thus, there will be significant changes in the near future regarding the most widespread organizational and legal forms of a business entity, a limited liability company. That is, will the creation of a company, the formation of the authorized capital, the inclusion and exclusion of members of the company, management of the company, etc., take place under the new rules? In any case, the creation of a company can not be carried out without the formation of the authorized capital. The experts of Finance Business Service were analyzing the innovations in the formation of the authorized capital. As you know, the authorized capital of a limited liability company consists of contribution from its participants. The size of the authorized capital of a company will consist of the nominal value of the shares of its participants, expressed in the national currency of Ukraine and may be further determined in percentage. There are no innovations in relation to the minimum size of the authorized capital. That is, the issue of establishment of the minimum and...

iForum – 2018: how it was

Published: 27/04/2018 | blog

Tags:

#ICO #Ukraine

On April 25, 2018 the Ukrainian forum of Internet activists was held in Kyiv. iForum is the nine main directions with thematic performances that take place simultaneously in several halls. After the official opening on the main stage, the reports continue throughout the day, without interruption. This year the following directions were presented in the program: internet business; startups; advertising and promotion; Internet technologies; future educational technologies; innovations; Blockchain, Digital Fun, CRM. Due to the fact that the emergence of the new startups on the ICO on the Ukrainian market is very topical today, the representatives of the Finance Business Service have chosen the Blockchain direction. The first performance in the Blockchain direction was the report of the representative of the Swiss office of KPMG Andre Gudel. The report referred to the publication of the Swiss Financial Market Supervisory Authority (FINMA) of the principles of application of the legislation when considering the requests from the organizers of the ICO. Unfortunately, it is not new information on the regulation of cryptocurrency in Switzerland,...

Is there bank secrecy in Ukraine, and what must the citizens of Ukraine be preparing for?

Published: 13/04/2018 | blog

Tags:

#Ukraine

What is bank secrecy The relevance and importance of the topic of bank secrecy is hard to overestimate. The correct application of the legal rules regulating the procedure for its disclosure is necessary both for bank employees and all other persons who are aimed at gaining access to this information. At the same time, it is necessary for natural persons and legal entities to obtain information “protected” by law in order to protect their violated rights. Article 60 of the Law of Ukraine No. 2121-III of 07.12.2000 “On Banks and Banking” (as amended, hereinafter - the Law of Ukraine “On Banks and Banking”) defines bank secrecy as information on the activities and financial status of the client that has become known to the bank in the process of servicing the client and relations with him or third parties when providing services of the bank. Bank secrecy, with respect to the bank’s clients, in particular, are: information about clients’ bank accounts; transactions that were carried out in favor of or on behalf of the client, transactions carried out by him; financial and economic status of clients; client protection systems; information...

What changes have been made to the system for blocking tax invoices

Published: 29/03/2018 | blog

Tags:

#Tax disputes #Taxation #Ukraine

As we noted earlier, pursuant to the Law of Ukraine No. 2245-VII of 07.12.2017 “On Amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine to ensure the balance of budget revenues in 2018”, the Cabinet of Ministers of Ukraine adopted Resolution No. 117 of 21.02.2018, which approved: “The procedure for suspension of registration of the tax invoice/calculation adjustment in the Unified Register of Tax Invoices”, “The organization of work of the commissions that decide to register a tax invoice/calculation adjustment in the Unified Register of Tax Invoices or refusal in such registration”, “Procedure for considering complaints against the decisions of the commissions that decide to register a tax invoice/calculation adjustment in the Unified Register of Tax Invoices or refuse to register them”. If the basic algorithm for suspending the registration of tax invoices and calculation adjustments (TI/CA) has remained almost unchanged, then the order of their “unlocking” has undergone significant changes. We will figure out what exactly has been changed, and whether this will simplify the life of the taxpayers. As before, the taxpayer will be...

New Supreme Court, the first “new” legal positions: What to expect and what to hope for?

Published: 31/01/2018 | blog

Tags:

#Court #Tax disputes #Ukraine

Despite all the advantages and disadvantages of the judicial reform that is taking place in Ukraine, the legal community and business nevertheless have placed certain hopes on the new Supreme Court and its focus on the rule of law, as well as on the fact that when considering cases and forming legal positions, it will take into account the practice of the European Court of Human Rights. Such hopes were not groundless, as Article 6 of the Code of Administrative Procedure of Ukraine indicates that “the Court applies the principle of the rule of law, taking into account the jurisprudence of the European Court of Human Rights” (other procedural codes contain similar provisions). Part 1 of Article 36 of the Law of Ukraine “On judicial system and status of judges” states: “The Supreme Court is the highest court in the judicial system of Ukraine, which ensures the constancy and unity of judicial practice in the order and manner prescribed by the procedural law”. It's no secret that there have been absolutely opposite positions of the courts for many years regarding the application of tax consequences in that case when a court verdict (or only the director’s explanations)...

Unblocking Tax Invoices: Will It Be the Same for Everyone?

Published: 17/01/2018 | blog

Tags:

#Tax disputes #Tax planning #Taxation #Ukraine

Before New Year, our legislators traditionally adopt and publish numerous changes in the tax legislation. The change from 2017 to 2018 was no exception. Thus, on December 7, 2017, the Law of Ukraine No.2245-VII “On Amending the Tax Code of Ukraine and Certain Legislative Acts of Ukraine on Ensuring the Balance of Budget Revenue in 2018” was adopted and officially published on December 30, 2017 (newspaper “Golos Ukrainy” No.248 (6753) dated December 30, 2017). The Law provides for the numerous changes in the tax legislation. The most expected change for business, perhaps, was the abolition of the “blocking” of tax invoices from January 1, 2018, at least until March 1, 2018. It became possible in connection with the exclusion of clause 74.2, article 74, of the Tax Code of Ukraine, which provided for the continuous automated monitoring of tax invoices and adjustment calculations for compliance with the criteria for the risk assessment sufficient to stop the registration of such tax invoices/adjustment calculations. In addition, paragraph 201.16 Art. 201 of the Tax Code of Ukraine has also been amended, according to which (new edition) “registration of a tax...

Single Judicial Information and Telecommunication System (SJITS) within the Framework of the Code of Administrative Court Procedure

Published: 26/12/2017 | blog

Tags:

#Tax disputes #Taxation #Taxes #Ukraine

It’s not a secret for anyone that in order to protect your rights and protected interests, in the event of a tax dispute, taxpayers apply to the district administrative courts. Since December 15, 2017, the procedure of appeal and the consideration procedure in the district administrative courts has changed significantly, in connection with the entry into force of the new edition of the Code of Administrative Court Procedure of Ukraine. The number of novels that appeared in the new edition of the Code is quite significant. In this article, I would like to provide an overview of such an innovation in administrative procedure as the Single Judicial Information and Telecommunication System. Article 18 of the Code of Administrative Court Procedure of Ukraine defines the tasks that are imposed on the Single Judicial Information and Telecommunication System (hereinafter - the System): registration of documents entering the court (which may be the subject of litigation); determination of the judge(s) for the consideration of the case; exchange of documents (sending and receiving documents) in electronic form between the courts, between the court and the participants to the...

Legal Regulation of Blockchain

Published: 07/11/2017 | blog

Tags:

#Bitcoin #Legislation #Ukraine #United Kingdom #USA

Legal regulation of blockchain. Latest changes and prospects for the development of legislation Blockchain Technology is a developing technology on which basis new applications in the field of finance appear daily. Regulators of some countries have already reported their intentions to study the use of blockchain technology, which is also called distributed ledger technology (DLT). The new technology is potentially attractive to the regulators because of the increased level of transaction security and risk reduction of manipulation, but, at the same time, it creates complex legal problems that regulators are trying to understand and resolve. In this article, we will try to make a brief analysis of the approach of regulatory authorities to blockchain technology. Regulation in the USA The regulators in the USA are seriously monitoring the development of blockchain and other DLT (as well as cryptocurrency, in circulation on the basis of such registers). Some express concern about their impact on financial stability and market integrity. At the same time, the US Securities and Exchange Commission (SEC) is actively exploring the potential possibilities of the use of...

Pay attention to administrative appeal of decisions on refusal of registration of tl

Published: 13/09/2017 | blog

Tags:

#Tax disputes #Ukraine

Since July 1, 2017, the program for the suspension of the registration of tax invoices and adjustment calculations in the Unified Register of Tax Invoices has been launched. The taxpayers faced two problems from the very first days: the first problem is actually the suspension of the registration of tax invoices; the second problem is the refusal to register the tax invoices after the submission of the documents to the SFS Commission by the taxpayer confirming the legitimacy of the formation of tax indicators. The subparagraph 201.16.3. of clause 201.16. article 201 of the Tax Code of Ukraine provides for the possibility of appealing against the decision of the SFS Commission on the refusal of the registration of a tax invoice, in the administrative or judicial procedure. In accordance with par. 56.23.2. cl. 56.23. art. 56 of the Tax Code of Ukraine, the Cabinet of Ministers of Ukraine adopted a Decree No. 485 of 04.07.2017, which approved the "Procedure for considering complaints against decisions of the State Fiscal Service Commission on refusal to register the tax invoice / adjustment calculation in the Unified Register of Tax Invoices." The experts of...

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