Lavrynovych & Partners has acted as a legal advisor in the process of drafting a memorandum on participation in a horizontal monitoring experiment, signed recently between the State Tax Service of Ukraine and ArcelorMittal Kryvyi Rih PJSC.
The experiment aims to introduce an essentially new model of cooperation between tax authorities and taxpayers. It is supposed to result in the creation and practical implementation of a new system for administering taxes and other duties, which will be more effective for the budget and less burdensome for taxpayers, and in the actual abandonment of documentary audits (except when the duty to perform such audits is imposed on a tax authority by law).
Horizontal monitoring involves complete and timely disclosure of relevant information by taxpayers and is expected to replace on-site documentary audits and other forms of tax control.
On the part of Lavrynovych & Partners, the memorandum was drafted by Partner Iryna Marushko and Associates Roman Blazhko and Dmytro Savchuk.
The new system will come into effect by the end of 2011. The starting date of the experiment will be set by resolution of the Cabinet of Ministers of Ukraine.