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Transparent Earnings: Moneybags To Explain Their Incomes

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The Ministry of Finance of Ukraine has developed criteria for wealthy Ukrainians. The body will oblige them to fill out annual declarations.

CASE Ukraine Senior Economist Volodymyr Dubrovsky said in a commentary to the Novoye Vremia media outlet that it would be good if getting access to this information could to be given only voluntarily and by court decision.

A person with high incomes should indicate in their tax returns the funds received during the year in the form of a salary, investment income, bank deposits, real estate transactions, etc. Late submission of a declaration entails the imposition of a 10% fine of the amount of income tax charged to this person.

In the analysis of the regulatory impact of the bill one notes it will help bring the economy out of the shadow, minimize the number of so-called ‘schemes’ and control the legality of incomes.

While commenting on this bill, CASE Ukraine Senior Economist Volodymyr Dubrovsky insisted that this information must be obtained only voluntarily and by court decision. Otherwise, a violation of banking secrecy will take place. In addition, this stimulate the growth of the shadow economy.

January 19, 2018