In Ukraine, 671 large taxpayers declare losses: the main reason for the scheme with non-residents.

The Ukrainian tax system is back in the spotlight. This time, 671 large taxpayers have reported losses resulting from the carryover of losses from previous periods. The head of the Office of Large Taxpayers, Yevhen Bambizov, reported this in an interview.

According to him, part of the losses arose due to currency exchange rate differences, and 30% of the total losses of 195 billion UAH were formed through loans taken from related non-residents. Bambizov noted that the growing popularity of loans from non-residents is related to tax minimization strategies.

'Often, founders take loans in amounts significantly larger than the investments they have made, although the tax legislation does not provide for this. This leads to a continuous increase in expenses and a lack of profit over a long period. This also occurs within the framework of the law but is aimed at evading tax payments,' Bambizov emphasized.

He believes that the problem can be solved by strengthening the National Bank of Ukraine's control over the repayment of debts by Ukrainian companies to non-residents.

Moreover, the State Budget-2017 was exceeded in terms of revenues, with an 18.4% increase in tax revenues compared to the previous year and a 29.7% increase in customs revenues. However, the tax plan was not fulfilled by 6.7%, while customs exceeded it by 12%.

The Ukrainian tax system is returning to the spotlight with reports of large taxpayers' losses and challenges in tax evasion through loans from non-residents. How successfully authorities manage to resolve this issue and protect the budget from losses remains to be seen.