By its letter No. 9993/7/15-1417 dd. 05.04.2012 "On Providing a Consultation" the State Tax Service clarified the application of penalties for violations of law concerning the application of paragraph 6 subsection 10 section XX of the Tax Code of Ukraine, under which financial penalties do not apply to corporate tax payers and to taxpayers that have switched to a common system of taxation, for violation of tax laws upon the result of the second – fourth calendar quarters of 2011.

STS explains that financial penalties shall not apply:

  1. in the case the taxpayer itself discovers errors and amends the tax returns upon the results of the second – fourth calendar quarters of 2011,
  2. if the taxpayer submits a tax return on income tax in violation of the deadlines for submitting tax returns upon the results of the second – fourth calendar quarters of 2011,
  3. in case of violation of the rules of accrual, withholding and payment (transfer) of tax at the payment source upon the results of the second – fourth calendar quarters of 2011,
  4. for violations of tax law upon the results of the second – fourth calendar quarters of 2011.

For failure or late submission of tax returns or incompliance with the requirements regarding amendments in tax returns a penalty shall apply to income tax payers starting with the results for the first quarter of 2012 and makes up UAH 170 for each such failure or delay. If the violation was committed by a taxpayer to whom a penalty was applied for a similar offense during the year, the amount of penalty will be UAH 1020. With regard to these provisions STS also explained that "during the year" means not a calendar year but a period of one year (up to 365 or 366 days – for a leap year).

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