Fiscal and audit supervision in a new way

The legislation on declaration has changed since January 1, 2020.  On October 2, 2019, the Law of Ukraine No. 140-IX “On Amendments Made to Certain Legislative Acts of Ukraine on Ensuring the Effectiveness of the Institutional Anti-Corruption Mechanism” was adopted, which in particular amended Articles 46 and 52 of the Law of Ukraine “On Prevention of Corruption”, expanding the list of information, which the declarant shall submit regarding himself and family members, and certain aspects of the declarations procedure as a whole have changed.

Among these amendments, the following should be noted:

  1. It shall be declared since 01.01.2020: – legal entities, trusts or other similar legal entities, the ultimate beneficial owner (auditor) of which is the subject of the declaration or members of his family; – cryptocurrencies belonging to the declarant entity or members of his or her family that are declared as intangible fixed assets;  – banking and other financial institutions, including those abroad, where accounts are opened with the declarant entity or his family members (irrespective of the type of account, as well as accounts opened by third parties in the name of the declarant entity or  members of his family) or kept funds, other property.  Such information shall include details of the type and number of the account, details of the banking or other financial institution, persons entitled to dispose of such account or access to an individual safe deposit box, persons who opened an account in the name of the declarant entity or its family members.
  2. It has been clarified that information about monetary assets, financial obligations would be submitted both for the declarant entity and for his family members.
  3. The financial liabilities of the declarant entity and his or her family will be stated, only if the amount of the liability exceeds the 50 subsistence minimums established for able-bodied persons as of January 1 of the reporting year. From now on, you do not need to specify the total amount of the financial liability, if its amount does not exceed the mentioned amount. Financial liabilities will not include funds that are owed to others.
  4. Data on a declared object owned or used by the declarant entity or its family members will be indicated in the declaration, if such object was in the possession or use as of the last day of the reporting period or for at least half a day during the reporting period.
  5. For the purpose of declaring, members of the family of the declarant entity shall be considered: – the person who is on marital terms with the declarant entity, – regardless of cohabitation with that entity; – the children of the declarant entity before reaching the age of majority – regardless of the cohabitation with that entity; – persons who have cohabited with the entity as of the last day of the reporting period or totally for at least 183 days during the year preceding the year in which the declaration was filed.
  6. A substantial change in the financial standing will be understood not only as income, the acquisition of property, but also an expense in excess of the 50 subsistence minimums established for able-bodied persons on 1 January of the year in question.

Alyona Zamkova, the lawyer of “Dynasty Law & Investment”.


Publications 4 February, 2020

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