The goal is to develop a more efficient, transparent, and modern system, in line with Ukraine’s National Revenue Strategy until 2030.
1. Background and Objectives
- Joint Effort with the IMF: The STS is acting on IMF technical assistance and recommendations to streamline Ukraine’s tax administration.
- Meeting with IMF Representatives: Ruslan Kravchenko, Head of the STS, emphasized the importance of implementing these reforms to meet international standards.
2. Four Key Reform Areas
-
Reform Management
- Monitoring Criteria: Updating indicators that track the progress and effectiveness of reforms.
- Change Management: Implementing mechanisms to ensure that improvements are sustainable and well-coordinated.
-
Compliance Risk Management
- Pilot Project KPIs: Developing key performance indicators to assess the effectiveness of compliance programs.
- Skills Audit: Conducting an employee competency review to enhance risk management capabilities.
-
Tax Audit
- Risk-Based Approaches: Introducing targeted audit methods to optimize resource use and focus on high-risk areas.
- Performance Indicators: Defining metrics to measure audit outcomes, ensuring accountability and efficiency.
-
IT Reforms
- Process Automation: Increasing the use of digital tools to reduce the administrative burden and improve transparency.
- Maximizing Transparency: Ensuring systems are modernized for better data handling and public trust.
3. Next Steps and Expected Outcomes
- Upcoming Work Plan: The STS and IMF have agreed on a roadmap to refine tax audit processes, including strategic and operational goals, as well as adopting a risk-based approach.
- Meeting IMF Targets: Successfully implementing these reforms will help Ukraine fulfill IMF memorandum obligations and strengthen its overall fiscal framework.
- Alignment with International Standards: By pursuing these reforms, Ukraine aims to modernize tax administration in line with global best practices and boost investor confidence.
By addressing compliance risk management, audit efficiency, IT modernization, and effective reform oversight, the STS is positioned to create a robust tax system that can respond to economic challenges, support public finances, and foster economic growth in Ukraine.
