Ukraine finance minister urges tax authorities to check his records
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.
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 therbc.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.
This portion of our website is available to Concorde Capital clients only. If you are
a client, but not yet registered for website access, please click here. Registered clients, please enter your login
and password to proceed:
If you are interested in establishing a client relationship with Concorde Capital, our
sales desk would be happy to hear from you, please contact