Foreign company controlled by a Ukrainian: what fines may be imposed after the bank's notification
Ukrainians were explained the consequences if a bank notified the State Tax Service about a foreign company of a Ukrainian resident.
Banks and other financial institutions are not responsible for failing to report that an individual or legal entity – a resident of Ukraine – owns a share in a foreign company.
At the same time, if a bank or financial institution provided the relevant information, and the Ukrainian resident is a controlling person of the foreign company but did not notify about acquiring or disposing of the share, did not submit reports regarding controlled foreign companies (CFCs), or did not pay taxes according to the CFC rules, fines and other liability measures provided by the Tax Code may be applied to them.
Such information is sent to the controlling authority electronically no later than five working days after the relevant facts are detected, the tax authorities noted.
To unify the submission of information and comply with the requirements of the Tax Code, a recommended notification form with the identifier J1610101 has been developed.
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