Unscheduled inspections may be held based on the decision taken by the head of the Supervisory authority in case of failure or late submission of tax reports.
A number of reasons for this unscheduled inspection are specified in subsection 78.1 of the Tax code of Ukraine. (Hereinafter the “TCU”). Particularly, according to the paragraph 78.1.2 of the TCU, documentary unscheduled inspection is carried out, if the taxpayer has not filed tax returns, the calculations, the report on controlled transactions or the transfer pricing documentation within the statutory period and if their provision is provided by the law.
Paragraph 78.4 of the TCU determined that the decision to conduct unscheduled documentary inspection is taken by the head of the Supervisory authority and it draws up an appropriate order.
The right to conduct unscheduled documentary check of the taxpayer is available only when the taxpayer was handed over against receipt a copy of the order to conduct unscheduled documentary inspection, before the beginning of the inspection.
The article 82 of the TCU provides that the duration of inspections should not exceed:
- 15 working days – for large taxpayers,
- 5 working days – for small businesses,
- 3 business days – for physical persons / entrepreneurs who do not have employees
- 10 working days – for other taxpayers.
Therefore, taxpayers have an additional reason to submit their tax reports in time, in order to avoid penalties from the regulatory authorities.
Corporate services consultant, Accace Ukraine