Assessment of Ukraine’s readiness for international automatic exchange of information for tax purposes

Abstract

The implementation of a constituent element of a three-tier model of transfer pricing documentation – a report in the context of the countries of the multinational group of companies – is a prerequisite for Ukraine's joining the Multilateral Competent Authority Agreement as a measure for implementation of Action 13. The Ministry of Finance of Ukraine, together with the State Tax Service of Ukraine, developed a Roadmap on preparation and harmonization of the draft regulatory legal acts necessary to ensure implementation of the Law of Ukraine dated January 16, 2020 No. 466-IX, according to which the development, approval and registration of the regulatory legal acts for the country-by-country reporting and the procedure for filling it out must be completed until November 23, 2020. The purpose of the article is to determine the institutional basis for improving the legislation of Ukraine in the field of international exchange of information for tax purposes, in particular, the development of recommendations and proposals of the OECD in the field of country-by-country reporting of the multinational group of companies. In the course of study, the authors examined the OECD documents that form the institutional basis for the development of methodological and organizational support for reporting in the context of countries. In accordance with Action 13 of the BEPS Action Plan, jurisdictions of the world have undertaken to increase the transparency of taxation by enshrining in law the requirement to disclose information on the general distribution of their income, taxes and other indicators by the location of economic activity of multinational group of companies. The comparative analysis of the termino­logy and content of information to be disclosed in the country-by-country reporting in accordance with OECD documentation and Law № 466-IX shows that there is a discrepancy in terminology, indicators and degree of data disclosure in some indicators.

Common Reporting Standard as a model for tax information exchange: mechanism of operation and implementation status in Ukraine

“…Among Ukrainian scholars, Kateryna Klymenko (Klymenko, 2022), Yana Oliynyk, Maria Kucheriava (Oliynyk & Kucheriava, 2021), and Olga Ivanytska (Ivanytska, 2022) have contributed to the discourse on CRS implementation in Ukraine. Their research provides insights into the specific challenges and opportunities faced by Ukraine in aligning with international tax standards and implementing automatic exchange of tax information.…”

Сountry-by-country reporting: appropriate use and confidentiality in automatic information exchange

“…Питання, що стосуються методичного та організаційного забезпечення запровадження в Україні автоматичного обміну податковою інформацією, згідно з рекомендаціями ОЕСР, досліджуються в роботах вітчизняних науковців: Л. Г. Ловінської, Я. В. Олійник, Н. М. Чухраєвої, М. В. Кучерявої [6][7][8][9]. Проте подальшого вивчення потребує як правовий механізм забезпечення конфіденційності податкової інформації, так і організаційно-адміністративний порядок автоматичного обміну нею та забезпечення належного її використання на міжнародному рівні.…”