CEOs of companies with tax debts will not be able to leave Ukraine

Many people have heard about international normative acts such as the “Convention on Human Rights” and also in Ukraine the most important normative legal act is the Constitution of Ukraine, which states that a person has the right to movement, and which a person can and should use until the court will issue a decision banning the departure of such a person. But since 2020, this right has been gradually taken away from business entities. So in the explanation of the State Tax Service in Ivano-Frankivsk it was stated that “The presence of a tax debt and / or arrears on a single contribution to individuals or legal entities may limit the right of a citizen, an individual – an entrepreneur (head of a legal entity) to travel outside Ukraine” … In the explanation it was said that if a subject that is engaged in economic activities has a long tax bill, and this is a single social contribution and other taxes, then such an entity may for some time be deprived of the opportunity to travel abroad for a court decision.

What kind of punishment can Directors have?

Also recently, the Ministry of Finance of Ukraine adopted new amendments to the Tax Code of Ukraine. According to these changes, the Head of the enterprise who has a debt of over 1 million hryvnia will not be able to leave Ukraine. I want to remind you that this ban on leaving in connection with any debt began to operate with alimony. Several years ago, amendments were adopted according to which the “malicious” defaulter of alimony cannot leave the borders of Ukraine until the debt is paid off. So there were situations when a person bought a vacation voucher for $ 5,000, and did not release him from Ukraine for $ 500. Thus, the state reduced the number of claims for alimony, and the alimony itself began to pay more frequently. In this situation, thanks to the travel bans for company executives, the state wants to attract more than 60 million hryvnia to the Ukrainian budget.

What to do?

Therefore, we always recommend clients to be vigilant with taxes, because in addition to debt, you can be charged with a penalty or a fine for late payment of tax.

In all incomprehensible situations, contact the specialists in order to quickly resolve this situation and not attract even more problems

The Immigration Law Office was established in 2007. It provides assistance to foreign clients in Kiev (KV), Odessa (OD), Dnipro (DP), Lviv (LV), Kharkiv (KH), Lugansk (LG) and Donetsk (DN) regions, Crimea (KR) and others regions of Ukraine.

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