Information update date: 17 May 2012

Tax Agreements

What can be the subject for a tax agreement?

A tax agreement with a taxpayer can be made to:

To reduce tax and/or sanctions
To define and/or decrease undeclared tax liabilities of a taxpayer within the indicated tax period(s) and types of tax(es)in by a taxpayer.
To postpone the deadlines of fulfilling tax declaration liabilities in future tax period(s)

Is it possible to make a tax agreement on financial sanctions against breaking rules of using control cash-register?

It is not allowed to make a tax agreement on financial sanctions against breaking the rules of using control cash-register

What amounts of money cannot be considered as a part of a tax agreement, besides sanction amount for breaking rules of using control cash-register

Making a tax agreement is not allowed regarding sanctions stipulated in the Tax Code’s paragraph 291, on current taxes and tax charges

Which structure application on tax agreement should be submitted to?

Application on establishing taxpayer’s tax agreement should be submitted to the revenue service

What are the outcomes of not meeting the deadlines of implementation of tax liabilities considered under a tax agreement?

In case of violation of deadlines for implementation of tax liabilities envisaged by a tax agreement, a taxpayer is responsible to pay a penalty – 0.5 % of an unpaid amount daily to the benefit of a state budget; the amount of penalty should not exceed 10% of a total amount to be paid as envisaged by the tax agreement.

Is it possible to submit declaration with amendments to the period(s) and/or types of tax outlined in the tax agreement?

After enforcement of a tax agreement on reducing tax liabilities, it is not allowed to make amendments to the agreed period(s) and/or types of tax(es) and make corrections to the amounts of tax liabilities by the taxpayer when filling out declaration.

Is it possible that control body assign additional tax to already existing tax liabilities stipulated in the tax agreement on periods and/or types of taxes ?

It is impossible for control organs to assign additional taxes to already existing tax liabilities (except in the situations when a taxpayer is not fulfilling obligations under the tax agreement) after signing the tax agreement act on reducing additional tax or sanctions in the section on additional tax (including inspection act and/or in the other document), indicated period(s) and types of tax(ex).

Is it possible to dispute a tax agreement ?

Taxpayer can dispute a tax agreement, in case agreement was made with party not authorized to do so.