Ukrnafta reports on payment of taxes in 2017
Ukrnafta reports on payment of taxes in 2017

In 2017, Ukrnafta fully met its current tax obligations having paid circa UAH 10.5 bln in taxes, including over UAH 6 bln of rent tax. The company paid 30% more in taxes in 2017 compared to 2016 when the company’s total tax bill was UAH 8.1 bln.

As of 31 December 2017, Ukrnafta carried on its books UAH 11.85 bln of overdue tax debt, whereas as of 31 December 2016 this amount was UAH 11.95 bln. This includes the debt owed by the company and its structural units, as well as the debt for the joint activities. Ukrnafta’s approach to recording and reporting tax debt is consistent with the Ukrainian law and is supported by the independent external auditor.

At the same time, Ukrnafta has learned that in 2017 the State Fiscal Service acting at own discretion used the company’s current tax payments to offset the tax debt from the previous periods. At the same time, the SFS unlawfully imposed 20% fine that was then added to the amount of tax debt. This led to artificial inflation of the company’s tax debt and explains why the SFS issued monthly reports about increase in the tax debt since the beginning of 2017 whereas Ukrnafta was paying its taxes in full.

Ukrnafta reminds that back in May 2017 the company sent to the SFS its proposal to restructure and fully repay the tax debt within three years. According to the SFS, the proposal was later handed over to the Ministry of Finance of Ukraine; however, Ukrnafta has not received any meaningful response from the government on this issue since.

                         

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