CASE Ukraine`s CEO Dmytro Boyarchuk comments to the Dengi.ua media outlet, why the government cannot abolish single tax.
‘I believe that it is not necessary to hurt the simplified tax system, since it protects against the discriminating activities of the State Fiscal Service of Ukraine (SFSU) in relation to the entrepreneurs. The question here is not so much about rates, but about protection from the taxmen` arbitrariness. For many small businesses, this system is as comfortable as possible. Having once paid, in fact, the fixed tax, or a tax on income from the sale of goods or providing services, the entrepreneur receives a kind of immunity against SFSU`s claims.
Given that fact, the Fiscal Service as an institution is very weak and susceptible to corruptive temptations of all kinds, the abolition of the simplified tax system threatens predictable consequences: entrepreneurs will be ‘milked’. And if the medium or large businesses are able to hire experienced lawyers and defend themselves, small businesses` chances to survive after ‘shakedowns’ are almost zero.
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