UNLA submitted amendments to the ESBU’s initiative on tax mediation—all proposals have been taken into account

The Ukrainian National Lobbyists Association (UNLA) has joined efforts to develop legislative amendments regarding the implementation of a pretrial settlement procedure for tax violations in cooperation with the Economic Security Bureau of Ukraine (ESBU).

As part of its work on the relevant ESBU initiative, UNLA submitted a set of amendments and comments on the draft amendments to the Criminal Code and the Code of Criminal Procedure of Ukraine. As a result of this joint effort, all of the Association’s proposals were taken into account.

Amendment materials:

Key Changes Proposed by UNLA

Among the key amendments that were supported were:

• Clarification of the “first-time” principle when applying the mechanism for resolving damages—to prevent the repeated decriminalization of similar offenses
• The transfer of key procedural powers to the prosecutor, specifically regarding:
  • Determining the Disposition of Physical Evidence
  • Lifting of the seizure of property
• Expanding the group of authorized individuals who may represent a taxpayer in the proceedings
• Changing the legal wording from “late payment” to “non-payment,” which more accurately reflects the nature of the offense
• Eliminating the risk of double prosecution, in particular by removing provisions that could lead to double charging and new proceedings

Separately, UNLA highlighted the need to clarify the mechanism for engaging an expert, since the current version effectively limits the taxpayer’s ability to influence the expert examination prior to the issuance of a notice of suspicion.

UNLA’s Position

The Association notes that the proposed amendments are practical in nature and aim to establish a working mechanism for tax mediation.

According to those involved in the process, once the final revisions are made, the document will essentially be ready for implementation and can be incorporated into the activities of the ESBU.

Work on the amendments was carried out by a specialized working group with the participation of Mr. Oleg Tsybula, head of the legal department. Oleksiy Shevchuk, chairman of the Ukrainian National Lobbyists Association, also joined the process.

Next Steps

UNLA emphasizes the need to promptly submit the agreed-upon proposals to the Verkhovna Rada Committee on Law Enforcement for further consideration and adoption as soon as possible.