February 26 2003, 10:06 APK-Inform

Ukraine's tax authorities accuse Odessa port of tax avoidance

According to Public Relations Department of State Tax Administration of Odessa region, an inspection of financial and economic activities of Odessa Trading Seaport has revealed a fact of non-payment of taxes for the total value of 8 million hryvnias.

Stepping from this fact, Investigation Department of Odessa Regional Tax Militia has prosecuted a criminal proceeding under the Article of Criminal Code of Ukraine "Avoidance from payment of taxes, fees and other obligatory charges in especially large dimensions". Investigation on the case is in progress.

Administration of the port disproves the information, however. Head of the Port Olexandr Soborov affirms that in 2002 the port overpaid VAT into the state budget for the total sum of 26 million hryvnias. The total worth of deductions, made by the port to budgets of all levels and special funds, is 87.5 million hryvnias, Soborov said.

According to Head of the Port's Marketing Department Svetlana Kobylianska, the issue with tax non-payment arose because in 2002 there was a zero VAT rate in effect for loading/unloading operations, provided for non-residents of Ukraine. However, at the end of year elucidation of the State Tax Administration was issued, stating that the VAT rate for this item must constitute 20 percent.

5.33 hryvnias = $1