The State Tax Service Prepares Tax Mediation: Businesses Will Be Able to Resolve Some Disputes Without Court
The State Tax Service of Ukraine has developed a draft law introducing the tool of tax mediation, allowing businesses and tax authorities to resolve some disputes without going to court. This was announced by the acting head of the STS, Lesya Karnaukh, during the 10th International Forum "Mediation and Law."
She noted that the document was prepared with the consultative support of the Ukrainian Academy of Mediation and will soon be submitted to the Ministry of Finance.
The need for a new mechanism is confirmed by the burden on the judicial system: currently, about 65 thousand tax disputes are pending in courts, while annually the STS reviews from 10 to 13 thousand complaints within administrative appeal procedures.
The draft law provides for the possibility of pre-trial dispute resolution involving an independent mediator. The procedure will be voluntary for both parties and confidential, and decisions reached as a result of compromise will be binding for execution.
If no agreement is reached, the taxpayer retains the right to go to court or continue the administrative appeal procedure. At the same time, mediation does not replace existing dispute resolution mechanisms but will become an additional tool for businesses.
According to Lesya Karnaukh, the idea of legislative regulation arose after a successful pilot project implemented jointly with the Business Ombudsman Council.
"We reviewed a number of complex disputes involving large taxpayers and saw that in many cases the parties can reach an agreement without court proceedings," she said.
The head of the STS also emphasized that not every tax dispute should reach the court, as this entails time and resource costs for both the state and businesses.
"Dialogue between the state and business has long proven its effectiveness. The main thing is the willingness to find a mutually acceptable solution," added Lesya Karnaukh.
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