Draft Law of Ukraine

On Amendment of Article 18 of the Law of Ukraine "On Procedure of Repayment of Taxpayers’ Liabilities to Budgets and State Special Purpose Funds"

According to this draft there is envisaged to put into practice the idea of writing off and/or allowing payment of tax debts by installments, provided that these debts have arisen because of in kind repayment of wages. Tax debts created prior to December 31, 1999 are subject to writing off, arrears accumulated prior to December 31, 2000 shall be allowed to be repaid by installments.

This draft law, if adopted, will allow solving the problem of writing off and restructuring tax debts for a number of taxpayers. The mentioned taxpayers, due to objective reasons, have had no opportunity to exercise their rights as to their tax debts in cases where wages were repaid in kind and where a taxpayer declared a tax debt. Such rights are specified in sub-clause 18.15 of clause 18 of Article 18 of the Law of Ukraine "On Procedure of Repayment of Taxpayers’ Liabilities to Budgets and State Special Purpose Funds".

Enactment of this law will improve the financial situation of a number of subjects of entrepreneurial activity.