​Tax administration processes in Ukraine have been assessed using the TADAT method

For the first time in Ukraine, the tax administration process has been assessed externally using TADAT (Tax Administration Diagnostic Assessment Tool) according to the methodology developed by the IMF, World Bank, the European Commission and EU countries.

What’s it about?

TADAT (Tax Administration Diagnostic Assessment Tool) is a tool for the unbiased and standardised assessment of the effectiveness of tax administration. In Ukraine, this assessment was conducted from February 12 till February 26, 2018.

The TADAT report lists the following strong points and deficits of the tax administration in Ukraine:

Strong points

Everything has been set up for the timely reporting; 
Everything has been set up for timely tax payments; 
The SFS has a separate unit for the processing of tax claims;
Tax authorities comply with the results of tax disputes;
Tax authorities regularly publish plans and results of their activities.

Deficits

There is no comprehensive plan in place to improve voluntary tax compliance. 
There is no sufficient assistance in place for tax payers to help them avoid mistakes in tax reports, gaps are present in the detection of mistakes in tax reports.
Methodology for the assessment of tax risks is outdated and does not meet modern standards

Accrued tax debts are too high

No systemic analysis for the tax gap is in place.
Automated information exchange between tax authorities, banks and financial organisations is not in place.
The full version of the TADAT report in English can be downloaded here.

“Two years ago we started negotiations with the European Commission to arrange the external assessment of tax administration in Ukraine, and today we already have a result. The received data we include in the action plan for the reform of the State Fiscal Service. We will submit this action plan to the Cabinet of Ministers, as soon as we have agreed all details with the main stakeholders. Finally, we are getting closer to the common vision of the comprehensive SFS reform,” Minister of Finance Oleksandr Danyliuk said.

What comes next?

The TADAT assessment results, the prepared reform concept for the SFS and the action plan for the reform of the tax authorities and the customs shall be agreed by the key stakeholders and submitted to the Cabinet of Ministers.