|By PR Newswire||
|August 27, 2014 04:18 AM EDT||
KIEV, Ukraine, Aug. 27, 2014 /PRNewswire/ -- While engaging in public dialogue concerning critical tax reforms, Ukrainian Prime Minister Arseniy Yatsenyuk has largely supported previous initiatives established by former Ukrainian Minister of Revenues and Duties Oleksandr Klymenko (http://oleksandrklymenko.com). As detailed in a recent Ukrainian media report (http://finance.obozrevatel.com/business-and-finance/81529-yatsenyuk-vnedryaet-nalogovyie-reformyi-po-retseptam-klimenko.htm), Yatsenyuk welcomes much of Klymenko's tax restructuring efforts with the common goal of benefitting taxpayers.
The news item, appearing in the finance-oriented Obozrevatel outlet, notes that efforts of current Minister of Revenues and Duties Igor Bilous have largely remained "ambiguous." The report further observes the restructuring strategies presently in discussion by the Ukrainian leadership were first planned by "reformer" Oleksandr Klymenko (http://oleksandrklymenkotaxesukraine.com) and designed to reduce the burden on taxpayers' income.
The shared focus of Klymenko, who served as Minister of Revenues and Duties from December 2012 to February 2014, and the current government, centers on the administration of the Unified Social Tax (UST) and Tax on Individual Personal Income (TIPI) with the aim of lowering overall rates and especially the portion paid by employers. An effective approach, as advocated by Klymenko, achieves substantial progress in reducing the practice of 'under the table' salary payments – a significant issue facing Ukraine's tax authorities.
Government proposals regarding the tax on personal income also echo Klymenko's positions. The models currently under consideration all share one common theme – the introduction of differential rates dependent on income level as well as the cancellation of the preferential rate on passive income.
Successive measures planned by Yatsenyuk repeat principles of Klymenko's administration, including the reduction of taxes and elimination of non-essential fees from which the state derives little, if any, gain.
Another concept championed by Klymenko (http://oleksandrklymenko4euintegration.com/) and supported by Yatsenyuk is the harmonization of tax accounting. At a meeting with the European Bank for Reconstruction and Development (EBRD) in February 2013, Klymenko outlined the functions of the newly-created Investment Council within the Ministry of Revenues and Duties: to combat corruption, ensure transparency, facilitate foreign investment and articulate tax advantages for foreign investors, including swift and competitive VAT repayments. The EBRD President commended Klymenko for the reforms he initiated in the Ukrainian tax system, pledged support for the Investment Council and specifically lauded the leader for his role in fighting corruption.
A report in Forbes Magazine (http://forbes.ua/news/1374750-klimenko-tamozhnya-nedosobrala-4-mlrd-grn-v-byudzhet) outlines the transformations instituted while Klymenko was in office to be "de facto, ready-to-go solutions for carrying out further reforms. These include electronic reporting, service centers throughout Ukraine and up-to-date monitoring centers to fight the country's shadow economy."
For additional information:
Andrey Sokolov, Adviser to Oleksandr Klymenko
[email protected] / +380677658787
SOURCE Office of Oleksandr Klymenko
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