Having read some specialized literature, and also the Law of Ukraine ‘About the order of extinction of tax payers’ obligation before budgets and state fund-in-trusts’ of 21.12.2000 # 2181-III, and the President Decree ‘About simplified system of taxation, accounting and reporting of small enterprise subjects’ of 28.06.1999 #746/99, I realized that there is no answer to this question anywhere.
The Law # 2181-III says that in case of not paying an agreed sum of tax obligation by a certain term a taxpayer must pay a fine of the following amount:
- At a 30-calendar day delay following the last day of a deadline for paying an agreed sum of a tax obligation – in amount of 10 per cent of a paid tax debt sum;
- At a 31-90-calendar day delay inclusive following the last day of a deadline for paying an agreed sum of a tax obligation – in amount of 20 per cent of a paid tax debt sum;
- At a delay that is more than 90 calendar days following the last day of a deadline for paying an agreed sum of a tax obligation – in amount of 50 per cent of a paid tax debt sum.
But sanctions stated in the Law are imposed in case of nonpayment of an ‘agreed’ obligation sum, and the simplified system doesn’t suppose the procedure of ‘harmonization’ of single tax sums. It turns out that is there is no harmonization – there is no fine and penalty for undue single tax payment.
Tax inspection has its own view on this issue. When filing an application about turning to single tax payment, and entrepreneur supposedly agrees on paying single tax in amount set by the local counsel, also confirms time limit for the payment, and single tax sum that must be paid monthly. On this terms, in their opinion, single tax sum is considered to be agreed, and a taxpayer must pay tax obligation by the 20-ieth of a month following the one when the previous payment was made. At the same time taking into consideration the fact that ‘singlepayers’ do not file a tax statement concerning single tax, by method of exception tax inspectors supposedly appropriate the right of tax obligation charge concerning this tax. In case a taxpayer doesn’t pay an agreed sum of the tax obligation by a certain time, a tax authority directs such a taxpayer tax demands that are arranged in accordance with agreed tax obligation sums not paid by a taxpayer, according to the Law.
But the Law # 2181 views on paying taxpayers’ obligations concerning taxes and dues. And in the Law of Ukraine ‘About taxation system’ of 25.06.1991 #1251-XII, with changes and additions, single tax is not mentioned. Consequently, force of the Law #2181 doesn’t principally spread on the single tax payment sphere.
Who should we believe then?
I decided to find some held on one of popular accounting forums where my question about possible actions in such a situation found many comments. Many people gave their answers, and each of these people described the story that had happened to them, and how they had reacted then.
‘…I also had such a situation. I call my local tax authority for the first time and ask whether I should pay 10% or not. They answered that I could pay 3-5 hryvnyas more, and write in the purpose simply ‘not for July, 2008’’
‘.. In a situation like this I just came to the tax inspector and she told me to pay to the same settlement account with the same wording ‘on purpose of’ the bigger sum (there is not 10% but more. Then they will count themselves). I paid and they divided it by their own articles. Nobody demanded anything else, and final summing up with inspector is obligatory’
‘… In practice tax inspection imposes fines according to the Law #2181, and thinks that single tax though paid by a taxpayer in advance is still considered ‘agreed obligation’ taking into account the fact that he had been turning to single tax and had been agree to pay it in that amount…
That’s why, besides a scanty fine, you also have to pay penalty depending on nonpayment term…’
‘… I had a 1-day delay. In that case a fine is around several kopecks. In the tax inspection I was told to pay my debt plus 10 kopecks for the delay next time’.
Having analyzed the gathered information I understood that although the law defends entrepreneurs, the tax inspection will still make the scapegoats out of them. For this reason I recommend in cases of delay to pay the fine of 10% of the sum and not to bother. And the fine along with administrative penalties the inspection will calculate itself.
