Kyiv drivers' huge transport tax debt is an indicator of the SFS inefficiency

The accumulation of transport tax arrears by Kyiv drivers, which amounted to UAH 72.4 million last year, is an indicator of the inefficiency of the administration procedure.

This was reported by the coordinator of the "Mutual Aid" movement, lawyer Viktor Medvid in a comment to a GolosUA correspondent.

"This issue depends on its administration. The tax has been introduced, but the administration procedure is not yet working effectively. And the fact that this amount has accumulated over the past year means that the State Fiscal Service is not fulfilling its function. Drivers are not in a hurry to pay this tax because they are not used to this innovation yet," the expert said.

Mr. Medved said that it is too early to say whether this amount will grow or decrease. And he explained why.

"The tax year ends on January 1. And this tax return must be submitted by the end of the first quarter (January, February, March). And it should include income and expenses. This amount is calculated by subtracting tax expenses from the amount of tax liabilities," the lawyer said.

Thus, as V. Medved explains, only after this period of time, i.e., April 1, will it be possible to say specifically who paid this tax and who did not pay it. And why they did not pay it. Only after this date will there be grounds to enforce the collection of funds from non-payers.

"Then it will be possible to give a certain assessment of the effectiveness or ineffectiveness of this tax. And also to understand how necessary this tax is and how adequate the amount of these funds is to the costs of its administration. And it may well turn out that the recovery of the amount of debt may be inadequate to the costs of litigation," the lawyer summarized.

As a reminder, according to the data posted on the official website of the State Fiscal Service and announced by the Head of the Main Department of the SFS in Kyiv, Lyudmyla Demchenko: "As of the beginning of February 2018, the tax debt on transport tax from individuals in the capital amounted to UAH 72.4 million, including UAH 22.3 million of debt incurred during 2017."

Also, according to her, in 2017, a tax lien on the transport tax on individuals was registered against the 1321st individual debtor for the amount of UAH 66.1 million, which is 91.2% of the total tax debt on the transport tax on individuals.

The SFS website also states that transport tax payers are, in particular, individuals (including non-residents) who own passenger cars registered in Ukraine in accordance with the current legislation.