“The supervisors have turned into racketeers”: Groisman on tax police

Prime Minister of Ukraine Volodymyr Groysman criticized the work of the tax police and the interior Ministry and the security service for fighting economic crimes and supported the idea of creating a single financial investigation Service, offering the Verkhovna Rada to set the beads the timing of its launch.

This Groisman said at a “government Hour” in Parliament, commenting on the dispute about the legal uncertainty of the tax police from 1 January 2017.

“What happened, happened… There are two options: to resume the work of the tax police and to leave everything as it was before. But I think you can make a more progressive step is to create a single financial investigations Service, which is civilized and of high quality”, – said the Prime Minister.

Groisman explained his position by the fact that it is in the interests of the real economy and business and is aimed at continued economic growth.

“I get tens and hundreds of complaints on the letters of tax police, the Department “K” of SBU, service of economy, the Ministry of internal Affairs and other regulatory bodies. At first approximation, 80% can be considered as real pressure on the real sector and business. These controllers turn into racketeers,” said the Prime Minister.

The head of government asked the deputies to gather for the next plenary meeting to decide: “what we do and in what time frame – if the renewal (tax police), for how long”.

“Can’t be this endless pressure system for businesses of any regulatory body,” again said Groisman.

We will remind, on February 23, the Parliament barely returned to the “legal life” tax police deputies blocked the rostrum and under the Rada was held to protest.

The attempt of the Verkhovna Rada on 23 February to return the tax police in the legal field has failed – supported by the specialized Parliament Committee amendment to the bill “On the taxation of inheritance” was criticized by Finance Minister Alexander Danyluk scored 194 votes with a required minimum of 226 votes.

As reported, during the passage of the bill on amendments to the Tax code to improve the investment climate (the law No. 1797-VIII) at the end of 2016 in Parliament was made a technical error when renumbering.

“De jure legal status of the tax police now – “outside the law”. De facto it is not eliminated, employees are not dismissed, the proceedings are transferred, continues its activities”, – described the situation the people’s Deputy Tetiana Ostrikova (“samopomich”Union faction).

“At the end of 2016 due to a technical error, the Verkhovna Rada has announced the tax police out of the law from January 1, 2017… whether to correct the error, again legalizing repressive tax police? You obviously don’t. We must move forward”, – said earlier the Minister of Finance.

A bill on the establishment of the financial investigation Service provides a number of basic principles on which it is planned to create financial police:

  • replacement of the power of the analytical approach;
  • downsizing to 2.5 thousand people (currently 15 million);
  • non-interference in the work of an honest business;
  • updating of staff through a transparent competition and an independent selection Committee, representatives of the power block – no more than 25%;
  • wages, which will reduce the risk of corruption and provide an opportunity to attract the best people.

Note that the law establishing a financial police and referred to in the Memorandum with the International monetary Fund.