How to restrict abuse of the simplified tax system

the Centre for Economic Strategy (CES) and the German Economic Team (GET) cordially invite you to join the discussion “How to restrict abuse of the simplified tax system”.

It’s online event, which will be held on November 3 at 10:00.  Please register at the bottom of the page.

The session will be held in English with simultaneous interpretation to Ukrainian via Zoom.

Approximately 47% of added value is created by SMEs. The “simplified system of taxation” (STS) is covering 73.7 % of all entities and 7.6% of all taxes paid. Hence, it is an important system for smaller companies and individual entrepreneurs, permitting them to conduct business with limited bureaucratic obligations and a low tax burden. Nevertheless, there are indications of abuse of the system, which creates fiscal losses and distorts competition against compliant taxpayers.

CES and GET will present a policy paper where they address the issues of tax evasion and tax avoidance by companies, which aim to stay under turnover limits and the present threshold for compulsory usage of cash registers in the STS, and provide recommendations on how to improve the existing system.

The expert discussion will be conducted in English and Ukrainian with consecutive translation. Please find below the agenda.

10:00-10:05 Opening remarks

• Maria Repko, Deputy Director, CES
• David Saha, Consultant, German Economic Team

10:05-10:25 – Policy Paper presentation «Combating revenue underreporting in the simplified tax system»,

• Yurii Gaidai, Senior Economist, CES

10:25-11:15 – List of invited participants

• Oleksandra Betliy, Leading Research Fellow of Institute for Economic Research and Policy Consulting
• Yurii Gaidai, Senior Economist, CES
• Andriy Yershov, Head of the analytical center of Union of Ukrainian Entrepreneurs (SUP)
• David Saha, Consultant, German Economic Team
• Thomas Otten, Expert of German Economic Team
• Olexander Palazov, Director of the Department of Regulatory Policy and Entrepreneurship of the Ministry of Economy, TBC
• Pavlo Yavorsky, Researcher at Trade+, International Trade Research Center of Kyiv School pf Economics
• Representative of the State Tax Service of Ukraine, TBC
• Representative of Ministry of Finance, TBC

Moderator: Maria Repko,  Deputy Director, CES

11:15-11:45 – Free discussion and Q&A