Ukraine has implemented the first successful international automatic exchange of information on financial accounts according to the Common Reporting Standard (CRS) to fight tax evasion. About this reported press service of the Ministry of Finance of Ukraine.
The State Tax Service of Ukraine handed over data on the financial accounts of foreign citizens, in exchange for receiving information from foreign competent authorities on the accounts of Ukrainian citizens. Among the data received are the account holder’s name, address, tax residency, tax number, date and place of birth, as well as information about the financial institution, the amount of dividends, interest and other income.
According to the Ministry of Finance, access to such information will help Ukraine improve control over the correctness of income declarations, identify undeclared funds, more effectively apply the rules of taxation of controlled foreign companies, and use indirect control methods for taxation of individuals.
This exchange is part of Ukraine’s obligations on the way to EU integration and is aimed at increasing the transparency of the tax system. The Ministry of Finance emphasizes that the new mechanism will allow Ukraine to fight tax evasion more effectively, which will help increase tax revenues and strengthen the country’s economic stability.
In June, the State Tax Service of Ukraine received a positive assessment from the OECD Global Forum for the maturity of the system of information security and data exchange for tax purposes, which was an important step towards the implementation of this initiative.
