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Ukraine finance minister urges tax authorities to check his records

Finance Minister Oleksandr Danylyuk invited tax authorities to review his records as soon as possible “to prevent destabilization ahead of Ukraine tapping international capital markets and the next stage of negotiations with the IMF" in an Aug. 3 blog post. As local media reported on July 31, the Prosecutor General's Office named Danylyuk a suspect in violating tax laws in 1998-2016 and urged authorities to investigate. In his response that day, Danylyuk denied all accusations in tax evasion.

 

The Poroshenko administration's pressure on Danylyuk might stem from his opposition to a proposal to refund part of VAT to exporters via local bonds instead of cash (in the amount of about UAH 4.6 bln), which was promoted by parliamentary tax committee head Nina Yuzhanina, according to an Aug. 2 article on the rbc.uanews site.

 

Alexander Paraschiy: The investigation of Danyliuk’s tax history going as far back as 1998 looks strange, given that the statute of limitations for tax cases is just three years in Ukraine. What is certain is the tension between the finance minister and power brokers, who want him to leave his post. Yet replacing him ahead of negotiations with the IMF and other Ukrainian creditors, expected to start in September, does not look desirable for the president. So we expect Poroshenko will keep Danylyuk's enemies at bay so that he could take care of the nation's business.
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