Taxation & Audit Taxation Issues Starting from the very moment of any company incorporation, its activity may be considered from the taxation point of view. Nowadays the work of an accountant is much similar to the work of a minesweeper on a minefield - any unjustified move can lead to unpredictable consequences. One of the most painstaking issues in taxation accounting - identifying of productive expenses used for a taxable base calculation is daily run across by the accountants. Below you can find the Frequently Asked Questions: May the enterprise account the total amount of insurance expenditures as company inputs in case of insurance agreement conclusion with a resident insurer and the reinsurance with an offshore company, provided the cover note is attached to the insurance agreement? May the amount of a Pension Fund due, paid on buying the foreign currency by non-cash settlement be accounted as gross diversion? A company has concluded a sales contract and received the commodities in accordance with the contract. The cost of the commodities is included into gross diversion and the amount of the VAT is stated in the section "Tax Credit" of a declaration. However, subsequently the payment for the received commodities was made by delivery of other commodities. During the examination, the tax inspector has imposed a fine for the tax credit reflection before the completion of tax obligations. Is that legal? Can the transportation expenses be included into the net cost of imported goods, imported by the company? If so, how is it to be done? Are they divided per unit of goods or attributed to the costs of accounting period in sum total? A bill of credit had been issued before the goods were delivered. Is such a deal deemed null? How from the taxation point can we plan efficiently the scheme to import expansive equipment using our own offshore company? A company has received the loan in foreign currency from a non-resident. The loan is duly registered with the National Bank of Ukraine. Are there any limitations on inclusion of the interests for utilization of the credit into gross diversion of the company? You can always address for professional advice to the K.A.C. Limited Legal Advisors and Auditors.   Audit Services K.A.C. Limited Legal Advisors & Auditors, licensed as a professional auditor by the Audit Chamber of Ukraine (Licence No.002128), renders professional audit services and elaborates ad-hoc techniques of economic and legal nature.   Mandatory Audit Certification of the correctness and completeness of the annual balance sheet and reports for the following business entities: open joint-stock companies; security issuers (including close JSCs); trust companies; investment companies and funds; credit unions; non-government pension funds; insurance companies; entities with foreign investments; entities alleged to be insolvent or bankrupt.   Audit of separate areas is conducted on request of the business entities management to identify mistakes in accountability and reporting, revelation of objects of taxation, calculation of taxes and other dues, elaboration of practical recommendations of correction if necessary: authorized fund audit; budget accounts audit; capital assets audit; audit of depreciation charges calculation; audit of accounts receivable; audit of cash transactions; currency transaction audit; clearing transaction audit etc.   Services required at the registration and liquidation of business entities audit of capital assets and intangible assets deposited in the statutory fund of the entities under re-foundation; audit of financial and economic activity including the examination of accounting correctness during liquidation under the owners decision.   Recovery of accounting records primary documents processing; accounting registers recovery; financial results calculation; recovery of purchase and sales records; calculation of gross revenues and diversions; taxable base evaluation; accountancy recovery; recommendation on business accounting recovery according to company specificity.   Financial and economic analysis of the company constitutes the basis for management decision-making (including that of stockholders), prerequisite for loan reception and investment attraction. The expert conclusions are prepared by generalization of the basic indicators characterizing the financial and economic state of companies.   Tax Planning Elaboration of the individual schemes of taxation minimization basing on: the norms of effective tax legislation; international double taxation treaties; tax privileges for the entities of the Free Economic Zones of Ukraine; non-resident low-tax companies (offshore); bill, tolling and set-off schemes; hidden opportunities, not regulated by the effective legislation.   Tax Advocacy Assertion of client interests before the tax authorities at the pre-trial investigation stage.   Long-term contract-based accounting services resumptive account registers; circulating and balance sheets; calculation of financial results; preparation and delivery of report documentation for tax administration, funds, statistics bodies; tax accounting; keeping of account documents.   Assistance in drafting of individuals income statement income tax optimization; drafting declarations for by-worker; declarations drafting in cases of cash assets or property possession abroad.   Expert Appraisal expert appraisal of assets in case of privatization, change of proprietor or investing; elaboration and appraisement of business plans; intangible assets appraisal. Our e-mail: audit@kac.relc.com