tax-authorities-reduced-inspections-of-individual-entrepreneurs-but-fines-increased-57-times-analysis

Tax authorities reduced inspections of individual entrepreneurs, but fines increased 5.7 times - analysis

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During the first 9 months of 2024, the State Tax Service conducted more than 5,000 documentary inspections of individual entrepreneurs, the number of inspections decreased by more than 25%, UNN writes, citing the monitoring service Opendatabot.

Details

According to the service, this year the tax authorities conducted 5,483 documentary inspections of individual entrepreneurs, which is 26% less than in the same period last year. In 2021, a record 31,178 inspections were recorded, an average of 2.6 thousand per month. For comparison, in 2024, the number of inspections dropped to 600 per month. Despite the reduction in the number of inspections, the amount of fines in 2024 increased 5.7 times compared to last year.

Entrepreneurs have been successful in challenging some tax audit decisions, reducing the amount by almost half. This year's tax audits resulted in additional charges of UAH 2.33 billion, but after appealing, this amount decreased to UAH 1.06 billion. For comparison, last year, entrepreneurs were able to appeal only a third of the charges.

The State Tax Service may impose additional taxes if an entrepreneur understates income, overstates expenses, unjustifiably uses benefits, commits VAT violations, submits reports late, cooperates with risky counterparties, violates currency laws, or fails to comply with the rules for accounting for tax differences.

Recall 

Earlier it was reported that the number of individual entrepreneurs in Ukraine is rapidly decreasing, and the trend of reducing the number of registered companies continues.

Iryna Kolesnik

Society

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