The State Tax Service of Ukraine continues its strategic partnership with the UK Revenue and Customs Service (HMRC). An updated Memorandum of Understanding has been signed between the tax services of Ukraine and the UK.
The document defines specific measures for the next three years. In particular, it outlines key areas of cooperation and joint measures aimed at strengthening the institutional capacity of tax administrations.
The Head of the State Tax Service, Lesya Karnaukh, exchanged signed copies of the Memorandum with the HMRC Director for Business, Assets and International Cooperation, Lizzie Arnold.
According to Lesya Karnaukh, the Memorandum is a confirmation of a joint commitment to continue cooperation, learn from each other and build stronger tax administrations for the future. And this is extremely important, given the previously signed 100-year Partnership Agreement between Ukraine and the United Kingdom.
“We have been developing effective cooperation with our British colleagues for several years. I am grateful to our partners who, in difficult times, help not only in the fight against the Russian aggressor, but also in transformational processes. With the support of our partners from HMRC, we are already actively implementing modern approaches to tax administration, developing analytics, services, etc.,” the head of the State Tax Service emphasized.
The updated Memorandum provides for the following priorities:
– Increasing taxpayers’ trust in the tax service;
– Reducing the tax gap;
– Regulating and taxing crypto-assets;
– Strengthening the fight against tax evasion schemes;
– Automatic exchange of tax information;
– Development of internal communications.
As noted by the Acting Head of the State Tax Service, HMRC’s experience in implementing a risk-based approach, developing digital services, applying behavioral approaches to increase compliance, as well as in international taxation issues is also important. Cooperation in these areas contributes to the implementation of the National Revenue Strategy until 2030 and strengthening the institutional capacity of the State Tax Service.
During a meeting with colleagues, Lesya Karnaukh shared the experience of the State Tax Service in ensuring the continuity of the tax service, stable budget replenishment and provision of services to taxpayers in conditions of a full-scale war. Ukraine continues to simultaneously support the financial stability of the state and implement large-scale tax administration reforms. (State Tax Service)