REUTERS
Ukraine's key creditor, the International Monetary Fund (IMF), proposes softening the country's legislation on bank secrecy to strengthen control over income and tax payments.
Such recommendation is set forth in the IMF Technical Assistance Report published on the website of the organization.
According to the IMF experts, the State Fiscal Service (SFS), responsible for control over tax payments, has limited powers in monitoring banking transactions, including cash withdrawals, which constitutes direct tax evasion.
Read alsoIMF proposes tougher rules for simplified taxation in Ukraine"The SFS can obtain bank statements only with a court order and the information so obtained is restricted generally to general account balances. A decisive push against an expanding informal sector would require softening bank secrecy laws, for example, requiring only the intermediation of the central bank to obtain the information," as noted in the report.
Read alsoIMF proposes new income taxation mechanism in UkraineEarlier the IMF also proposed changes to the procedure for administering personal income tax and single social security tax.