On January 11, the President of Ukraine vetoed the new version of the Tax Code and sent it back to be improved and postponed the date of its becoming effective until January 01, 2013.

The level of the legal drafting methodology and quality of this legislative act fully repeats errors of the previous codification, in particular, the tax laws, says Roman Leshchenko, a lawyer at the Corporate Practice Department of Legal Assistance Group LF.

Lawmakers’ objective is to simplify and coordinate customs procedures in accordance with global standards by introducing progressive instruments for customs clearance, increase the value limits of imports without tax payment, liberalize exports standards. However, the results show that we receive a document where all of the aforesaid progressive innovations are lost in an array of gaps, inconsistencies with the Constitution and Laws of Ukraine, and, what is the worst, excessive regulation of administrative customs procedures, says Mr. Leshchenko.

The lawyer believes that it is primarily the complicated administration of customs procedures that considerably enables corruption risks and significantly affects the investment attractiveness level of Ukraine, in particular, use of its territory for transiting goods, works, and services. For example, Section 2 Article 491 of the Tax Code sets forth than a legal action may be brought in case of violating customs rules on the basis of sufficient information evidencing existence of signs of violation of customs rules in an entity’s actions. In other words, no unbiased criteria are stipulated in this case.  

“As we know, five out of ten international transport corridors of Europe pass across our country. For this reason, administrative customs procedures should be simplified to the maximum extent; in particular, a transparent mechanism of determining the customs value of goods should be established, a clear customs control procedure must be introduced, the discretionary powers of customs officers have to be restricted as much as possible, and liability of business entities and customs authorities for breaching the laws of Ukraine should be balanced”, says R. Leshchenko. The President partially points out to these aspects in his proposals to the Customs Code; however, the lawyer believes that it is not enough.

There is no doubt that legal practices will not change fundamentally due to the fact that the old version of the Code will be effective for one more year; however, the legal community should participate in codification of the customs laws during this period.

Source: jurliga.ligazakon.ua