Kyiv Scientific Research Institute of Forensic Expertise of the Ministry of Justice of Ukraine held an internal seminar “Corporate Profit Tax: practice of tax audits and options for solving the tasks set for economic examination”.
Specialists of the Laboratory of Economic Research and experts-economists of the regional branches of the Institute took part in the event.
Oleksandr Ruvin, Director of KFI, in a welcoming speech, noted that forensic examination is one of the most necessary types of research, solves a wide range of issues of pre-trial investigation and trial of economic crimes and develops in accordance with the requirements of society.
“The topic of the seminar is especially relevant in view of the changes to the Tax Code of Ukraine and the fact that its norms are currently based primarily on international accounting standards. The tax authorities carry out inspections taking into account these changes, appropriate examinations are assigned to us and experts must understand them perfectly,” said Olha Lukova, Head of the Laboratory of Economic Research.
Kateryna Proskura, Doctor of Economics and the expert of KFI, was the speaker of the seminar as well.
In general, the seminar program included three blocks of questions. On the first block “Overview of current practice of tax audits for income tax” was considered the following issues:
- Recognition of accounts payable as income shows signs of hopelessness;
- Calculation and inclusion of exchange differences in income and expenses;
- Adjustment of the object of taxation in the amount of interest accrued on the use of loans received from non-residents – related parties;
- Adjustment of the object of taxation by 30% of the cost of purchase of goods, services from non-residents registered in low-tax jurisdictions and from non-residents whose legal form does not provide for corporate tax (income tax) in the country of their residence;
- Transfer pricing: identification of controlled transactions and features of its taxation;
- Methods of discounting long-term financial assets and financial liabilities;
- Accounting for long-term leases with the lessee and the lessor in accordance with IFRS 16 Leases.
During the second block “Practice of solving the problems of economic examination on issues of violation of the legislation on income tax”, experts discussed the following problems:
- Fictitious transactions and exclusions from the cost of operations with fictitious features;
- Including exchange rate differences and interest on borrowings from related parties;
- Reduction of utility and subsequent sale of fixed assets: how the object of taxation of VAT is determined upon sale;
- The devaluation of inventories that have lost consumer properties, the net realizable value and taxation of income taxes on transactions carried out within the markdown;
- Recognition of long-term leases: risks for the lessee and the lessor.
The final third block “Analysis of current projects of changes to tax legislation” was devoted to a discussion of practical situations on the subject of training.
After a general discussion and summarizing the results of the seminar, representatives of the regional departments of KFI reported on the results of the past six months. The quantitative indicators of the expertise, the workload of experts and future ways of developing the expert and scientific work of the departments were analyzed as well.
The solemn and pleasant moment of the meeting of the general staff of the Laboratory of Economic Research was the awarding of expert-economists of Kyiv Scientific Research Institute of Forensic Expertise for expert and scientific achievements.