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Law news Elimination for inaction or how the number of Flps will decrease soon

Elimination for inaction or how the number of Flps will decrease soon

 

If you don’t work or pay taxes for more than six months, they can get rid of it. It was this initiative to reduce the number of "inactive" FLP registered by the representatives of the PP "Servant of the People"

In particular, according to the deputies, this method should reduce the costs of their registration and monitoring.
On October, the No2274 Bill, "On Amendments to the Tax Code Concerning Powers to Terminate the Business of the FLP" was submitted to the Verkhovna Rada and registered with the Verkhovna Rada

More detailed about this Legal Project has told for "Business Capital" the lawyer, the head of the civil practice of UC "Riyako & Partners" - Nikolay Maximov.

Counsel says that such changes would reduce some of the burden on the FLP accountancy and control authorities.

In particular, it is assumed that state can eliminate TPL. The Registrar, at the request of the tax authority, but only if the person has not been active for more than six months and has not paid taxes accordingly.

One of the main reasons for introducing such a system is that today it is 9.5 million. UAH are "hanging" in debt to the Pension Fund, and as a result, pensions cannot be properly planned. The Treasury believes that these funds should be received from the debtors.

Some entrepreneurs are consciously abandoning their activities, but are not themselves fully eliminating the status of FLP, for various reasons: 

  • lack of time; 
  • Ignorance of the procedure; 
  • Lack of awareness of the consequences.

Without the elimination of the ER status, even after its complete cessation of business, the tax authorities continue to charge tax liabilities, and after a few years the citizen learns of the existence of a large ERU debt.

The adoption of the new Bill and the filing of an action by the tax authorities for the elimination of the FLP will eliminate the ERU for a long period of time when the status of entrepreneur exists but the person does not actually operate and pay the ERU.

On the other hand, the negative effects of the introduction of the Act include direct intervention by the State in private business - the tax authorities will not only be able to prosecute for non-payment of Erus, but also to suspend through the court his right to engage in entrepreneurial activity.

It is important to remember that the draft law provides for the right of the tax authorities to apply to the court for the suspension of business activity not because of the cessation of the actual economic activity, but because of the non-payment of the ERU tax. There may also be a risk that an active small business, which has short-term problems in meeting its tax obligations, will lose its right to do business.

Overall, as Maximov’s lawyer points out, the benefits will be much greater for both the state and the entrepreneurs, given that there are indirect violations of the rights of entrepreneurs, but they are likely to go unnoticed.

More on the topic by reference: http:////ww.dsnews.ua/economics/ubit_voy_sny_snili-pomilovat-kakuyu-sudbu-parlamentarii-23102019224200

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