(2) Tax liability shall have a priority over any other taxpayer's liability, except for the cases stipulated by law.

(3) Grounds for the arising, change or termination of the tax liability as well as the terms and procedure of its discharge shall be defined by this Code and other tax regulations.

(4) Taxpayer's tax liability shall arise from the moment of the appearance of the grounds specified by this Code and other tax regulations to which the duty to pay taxes is related, and it shall terminate upon the tax remittance to the budgets except for the cases specified by this Code and other laws.

(5) If the taxpayer does not discharge his tax liability, he shall bear responsibility in accordance with this Code and other laws.

(1) Unless otherwise provided by tax regulations, amounts of tax accrued shall be the amounts of respective taxes recorded on the registers of State Revenue Service authorities in the respective tax period, including the amounts additionally accrued based on the results of tax inspections.

(2) State Revenue Service authorities shall accrue taxes in accordance with:

a) the data contained in tax returns (tax calculation sheets) filed by taxpayers;

b) the data obtained in the course of effecting tax control or conducting audits or in accordance with other data that are known to the State Revenue Service authorities.

(3) State Revenue Service authorities may accrue taxes or change the amounts accrued previously until the expiry of the period of limitation provided by Article 13059 of this Code.

Amounts of taxes withheld from taxpayers by tax agents shall become tax agents' tax liabilities after such withholding. In this case taxpayers' tax liabilities shall be terminated.

(1) Except for the cases explicitly provided by this Code, the taxpayer shall calculate the tax amounts due on his own and shall file the information on such amounts with the State Revenue Service authority within the terms set by this Code and other tax regulations. He shall remit the taxes himself without prior agreeing their amounts with State Revenue Service authorities.

(2) The amount of taxes determined by the taxpayer in his tax return (tax calculation sheet) shall be deemed an agreed amount payable within the terms set by this Code and other tax regulations.

(3) The State Revenue Service authority shall determine the amount of taxpayer's tax liability itself if:

a) the taxpayer has not filed his tax return (tax calculation sheet) within the specified terms;

b) inspections of results of the taxpayer's activities reveal an understatement or overstatement of the amount of his tax liability;

c) the State Revenue Service authority has identified arithmetical or other errors in the tax return (tax calculation sheet) submitted by the taxpayer;

d) in other cases explicitly specified by this Code.

(4) Based on results of the work conducted in accordance with paragraph (3) of this Article, State Revenue Service authorities shall send to taxpayers, tax notifications and/or tax summonses.

(5) The State Revenue Service authority shall send to the taxpayer, tax summonses only in the cases specified in paragraph (6) of this Article and in other cases explicitly provided by this Code. The burden of proof with regard to the erroneous nature of any additional tax accrual made by the State Revenue Service authority shall rest with the taxpayer.

(6) In the event of additionally accruing the amounts of taxes based on the results of tax inspections and in the event the taxpayer does not submit his tax return (tax calculation sheet) within the terms specified by this Code and other tax regulations, the State Revenue Service authority shall serve such taxpayer with tax summonses signed by the head of this State Revenue Service authority demanding payment of the additionally accrued tax amounts and penalties whose size depends upon the size of the additionally accrued tax amounts and/or the demand to file the tax return (tax calculation sheet) within 3 working days that begin after the day the head of the respective State Revenue Service authority adopted the decision to approve the results of the tax inspection and, in the event the tax return (tax calculation sheet) was not filed - during 3 working days that begin after the day when such tax returns (tax calculation sheets) should have been filed.

(7) In the event of not agreeing the amounts of additionally accrued taxes and accrued (applied) penalties mentioned in paragraph (6) of this Article with State Revenue Service authorities, these authorities may serve taxpayers with the following summonses.

(8) The tax summons form shall be determined by the Central Authority of the State Revenue Service of Ukraine.

(9) The amounts of additionally accrued taxes and accrued (applied) penalties mentioned in paragraph (6) shall be deemed agreed with State Revenue Service authorities, if the taxpayer signed an unqualified tax inspection report or (if he declines to sign such a report) if he did not file a claim against the demand to pay additionally accrued taxes and accrued penalties before the expiry of the period during which he should fulfill such demand. In such event the taxpayer shall be obligated to remit the said amounts to the budgets within the terms specified in Article 14004 of this Code.

(1) In the event the amounts have not been agreed in accordance with the established procedure, the fulfillment of a demand to pay taxes and penalties shall be suspended, if:

a) before the expiry of the period prescribed for the fulfillment of the demand to pay taxes and penalties, the taxpayer challenged this demand before a higher State Revenue Service authority, if a complaint had been lodged with the lower State Revenue Service authority that advanced the demand to pay taxes and penalties and this complaint had not been satisfied;

b) before the expiry of the period prescribed for the fulfillment of the demand to pay taxes and penalties, the taxpayer challenged this demand in court;

c) a deferment of paying taxes and/or penalties has been granted (or such taxes and/or penalties were allowed to be paid by installments) with regard to the payment which is demanded.

(2) The suspension of the term prescribed for the fulfillment of the demand to pay taxes and/or penalties in the cases specified in subparagraphs a and b of paragraph (1) of this Article shall start as from the day when the competent authority receives the taxpayer's complaint and it shall end on the day such authority adopts a decision (or the decision becomes effective).

(3) The suspension of the term prescribed for the fulfillment of the demand to pay taxes and/or penalties shall not suspend the demand itself.

(4) If the taxpayer challenges, in accordance with this Article, the demand to pay taxes and/or penalties, the head of the State Revenue Service authority that additionally accrued tax amounts or penalties shall be entitled to decide that such taxpayer's assets should be charged to secure the fulfillment of the tax demand, if during the consideration of the complaint a justified conclusion is prepared to the effect that:

a) the taxpayer is trying to sell or otherwise dispose of his assets;

b) the taxpayer is incurring losses that may result in the total loss of his assets;

c) the taxpayer is concealing his assets or intends to move those outside Ukraine.

(5) If, following the consideration of the taxpayers' complaints against the demands to pay taxes and/or penalties in the cases specified in subparagraphs a and b of paragraph (1) of this Article, no favorable, for the taxpayers, decision was adopted, they shall fulfill the said demands taking into account the fines, including those accrued for the period during which the fulfillment of the demands was suspended in accordance with this Article.

(1) Changing the terms discharge tax liabilities shall be moving the payment of taxes and/or penalties or their parts (hereinafter in this Article referred to as "taxes") for later terms if compared to those provided by this Code and other tax regulations.

(2) Changing the terms discharge tax liabilities shall be effected in the form of:

a) a deferment under tax credit arrangements that shall envision the moving of tax remittances to later terms pursuant to the decision by the State Revenue Service authority subject to the conditions defined in the tax credit agreement (hereinafter referred to as "tax deferment").

b) tax payment by installments under tax credit arrangements that shall envision the distribution of tax amounts and their payment in several periods pursuant to the decision by the State Revenue Service authority under the conditions defined in the tax credit agreement (hereinafter referred to as "tax paid by installments").

(3) State Revenue Service authorities shall grant tax deferments or allow tax payment by installments during one budget year having due regard to the taxpayer's financial position.

(4) The amounts deferred (allowed to be paid by installments) shall not accrue fines as from the day of entering into the tax credit agreement.

(5) During the periods when taxes are deferred (allowed to be paid by installments) taxpayers shall pay for the use of budget funds in the amounts to be established by the Cabinet of Ministers of Ukraine.

(6) Tax deferment shall not be granted (the amounts due shall not be allowed to be paid by installments) in respect of the personal income tax withheld by tax agents. In this case a deferment may be granted (the amounts may be allowed to be paid by installments) only in respect of the fines resulting from an overdue personal income tax remittance, including the tax not withheld at the source of the income payment or the tax not withheld in full.

(7) Changing the term of discharging the tax liability shall not terminate the effective liability or create a new one.

(8) Firewalls between the competences of the State Revenue Service authorities with regard to granting a tax deferral (or allowing the tax to be paid by installments) shall be established by the Central Authority of the State Revenue Service of Ukraine.

(9) The issue of changing the term of discharging the tax liability, that is, granting a tax deferment or allowing it to be paid by installments, shall be considered based on the taxpayer's written application specifying the tax amount, in respect of which the taxpayer asks to be granted a tax deferment or allowed to pay it by installments, and the desirable period of such deferment. The taxpayer shall lodge the above application with the State Revenue Service authority whose competences include making the decision on granting a tax deferment (allowing the tax to be paid by installments).

1. Taxpayer's application to be granted a tax deferment (allowed to pay the tax by installments) should be supplemented with the analysis of his financial position, the debt repayment schedule (if he applies for the installment plan) and the projection of the taxpayer's income that guarantees the observance of the repayment schedule.

2. The application mentioned in subparagraph 1 of paragraph (9) of this Article shall be considered by the State Revenue Service authority within 10 working days from the day of its lodging.

3. Following the consideration of the application mentioned in subparagraph 1 of paragraph (9) of this Article, the State Revenue Service authority shall:

a) adopt a decision on granting a tax deferment (allowing the tax to be paid by installments), the copy of such decision to be sent to the taxpayer;

b) refuse the taxpayer's application to be granted a tax deferment in writing, in particular, in the cases stipulated in Article 13052 of this Code, stating the reasons for such refusal.

4. The decision to grant a tax deferment (allow the tax to be paid by installments) shall specify the amount of taxes in respect of which the deferment is granted (or which is allowed to be paid by installments), the fee charged for the use of budget funds and the terms of repayment.

5. The decision to grant a tax deferment (allow the tax to be paid by installments) shall be made by the heads of the State Revenue Service authorities or their deputies in accordance with the form to be approved by the Central Authority of the State Revenue Service of Ukraine.

(11) The lodging of an application to be granted a tax deferment (to be allowed to pay the tax by installments) shall not terminate their exacting in accordance with the established procedure. In case of adoption of the decision to grant a tax deferment (allow the tax to be paid by installments) the taxes shall be exacted up to the day when the tax credit agreement is concluded.

(12) Pursuant to the decision by the head of the State Revenue Service authority, overdue taxes of the taxpayer who is on the run may not be accounted for until the day when the information is received that the taxpayer is located, for the period of no more than three years from the day when the search is announced.

(1) The terms of discharging the tax liability may not be changed when a criminal proceeding is brought against the taxpayer for tax offences as well as when there are sufficient grounds to believe that:

a) the taxpayer will take advantage of such change to conceal his funds or property or to alienate the latter;

b) the taxpayer-natural person intends to leave Ukraine for permanent residence;

c) the taxpayer, due to his insolvency, will not discharge his tax liability upon its maturity.

(2) Any decision of the State Revenue Service authority to change the term of discharging the tax liability as well as any tax credit agreement concluded in pursuance of such decision shall be invalidated when the circumstances mentioned in paragraph (1) of this Article exist. Such decision shall be invalidated in accordance with the procedure mandated by the Central Authority of the State Revenue Service of Ukraine.

(3) The State Revenue Service authority that invalidated the decision to change the term of discharging the tax liability and the tax credit agreement concluded in pursuance of such decision shall, within thee working days from the day of such invalidation, notify the respective taxpayer and the State Revenue Service with which he is registered in writing (stating the grounds for the adoption of such decision).

(4) The taxpayer shall be entitled to challenge such decision in accordance with the procedure stipulated by law.

(1) The amounts of taxes and penalties, applied for tax violations, that have not been remitted to the budgets within the specified terms shall be recognized as taxpayers' tax debts.

(2) Tax debts shall be recovered in accordance with the procedure stipulated by this Code.

(1) On the sixth working day after the tax liability arose, the State Revenue Service authority shall decide to suspend all transactions at such taxpayer's bank accounts, except for transactions to transfer the money owed to the budget.

1. The State Revenue Service authority shall duly notify the taxpayer of the decision to suspend transactions at his bank accounts and at the same time shall send the bank (banks) an instruction to this effect.

2. During 5 working days from the day he was served with a notification to the effect that transactions at his bank accounts were suspended, the taxpayer may challenge the said decision in court (court of arbitration).

(2) Should the taxpayer - a legal entity or a branch (department), a representation of a legal entity (hereinafter in this Article referred to as "legal entity") that has a tax debt - fail to take, within 10 days from the day when such debt arose, the sufficient steps to repay such debt, the State Revenue Service authority shall adopt a decision to recover such tax debt, the said decision not being subject to appeal.

1. The decision to recover the tax debt that is not subject to appeal shall be adopted by the head of the State Revenue Service authority or his deputy.

2. A copy of the not-subject-to-appeal decision to recover the tax debt shall be served to the director or chief accountant of the legal entity.

(3) If, within 10 days after the not-subject-to-appeal decision to recover the tax debt was adopted, the taxpayer legal entity did not voluntarily repay such tax debt, the State Revenue Service authority, based on the information on the cash flow at such taxpayer's accounts obtained from the banks, shall prepare a money transfer demand. A money transfer demand to execute a non-appealable withdrawal of funds from taxpayer's bank accounts shall be sent to the banks only if there are funds at the taxpayers' bank accounts.

(4) If the taxpayer legal entity that has a tax debt should disagree with the State Revenue Service authority's decision to recover such debt in a non-appealable manner and lodge a complaint against such decision in accordance with the established procedure, such withdrawal may be suspended by a higher State Revenue Service authority for 30 days as from the day of adopting the decision on such non-appealable withdrawal. If the said complaint should be refused, the tax debt shall be recovered together with the fine accrued. The fine shall accrue as from the day when such tax liability arose and up to the day when such tax liability was discharged.

(5) If there are no funds at the bank accounts of the taxpayer legal entity that has a tax debt or they are insufficient, State Revenue Service authorities may confiscate such taxpayer's cash.

1. Subject to confiscation shall be the debtor taxpayer's cash at the location where the taxpayer conducts his business activities which is stored in a money box, a safe or an electronic cash register (except for the funds withdrawn from the banks for the purpose of paying salaries, reimbursing business travel expenses, granting financial assistance, making a final settlement in case of a dismissal as well as bills and coins to give change to individuals in the amount determined by the National Bank of Ukraine).

2. Not subject to confiscation shall be the cash received by trading companies from the sale of agricultural products and food which they took from domestic producers for the purpose of selling to consumers without prior payment for such products as well as the goods taken on commission.

3. If the amount of the taxpayer's cash exceeds the amount of the tax debt, the officials of the State Revenue Service authorities shall confiscate such cash only in the amount equal to such taxpayer's tax debt.

4. On the day of confiscation, the State Revenue Service authorities shall deposit the confiscated cash on taxpayers' current accounts in the banks or transferred to such accounts via post offices, except for the cases mentioned in subparagraph 5 of paragraph (6) of this Article.

5. The taxpayers cash confiscated in the evening or at night shall be deposited in the bank or a postal office no later than on the next working day. Before depositing such confiscated cash in the bank or a post office, it should be kept at the State Revenue Service authority's premises in a collector's bag until the next working day. The bag must be sealed by a special seal of the official at the State Revenue Service authority.

(6) If the taxpayer that has a tax debt should have no funds either at his bank accounts or in cash, recovered in the non-appealable manner shall be the amounts which such taxpayer is about to receive from his debtors - legal entities.

1. The imposition of recovery on the bank accounts of debtors of the taxpayer that has a tax debt shall be effected by State Revenue Service authorities by means of presenting a money transfer demand, if a reconciliation statement between the debtor legal entity and such taxpayer exists or if there is a report of an alternative inspection verifying such debt.

2. The decision of the State Revenue Service authority to recover the taxpayer’s tax debt from the accounts of his debtors shall be duly served to such debtors.

3. If, within 10 days from the day when he was duly served with a decision mentioned in subparagraph 2 of paragraph (6) of this Article, the debtor does not voluntarily remit the respective amounts to the budget, the State Revenue Service authority shall prepare a money transfer demand.

4. A money transfer demand shall be issued within 30 calendar days from the drawing up of the respective report mentioned in subparagraph 1 of paragraph (6) of this Article.

5. The recovery of receivables from legal entities that are financed from the budget shall be made pursuant to a decision of financial regulators.

6. Money transfer demands to recover the amounts owed to the taxpayer having a tax debt from his debtors shall be transmitted to the bank servicing such a taxpayer. Such money transfer demands shall be sent to the banks only if there are funds at debtors’ accounts.

7. The amounts recovered from the debtor of the taxpayer having a tax debt shall be transferred directly to the respective budget bypassing the taxpayer’s accounts.

8. When the amounts of receivables of the taxpayer having a tax debt arrive to the budget as a repayment of his tax debt, the State Revenue Service authorities shall notify the said taxpayer of the fact in writing no later than on the day following the day when the documents confirming the transfer of the respective amounts to the budget (budgets) were received.

(1) From the day when a tax debt arose, all taxpayer’s assets and property rights shall be charged against such tax debt, except for the assets and property rights which, in accordance with law, may not be charged.

1. Paragraph (1) of this Article shall cover the assets of taxpayers – legal entities, branches (departments) and representations of legal entities, except for fixed assets of enterprises recognized as government enterprises in accordance with the established procedure. The said paragraph shall not cover assets and property rights of taxpayers who are natural entities – business subjects, when such assets and property rights are used by such individuals in the course of their business activities.

2. A tax pledge shall be a kind of security ensuring the discharge of the tax liability.

3. A tax pledge shall not be required to be executed in writing.

4. In accordance with the procedure to be established by the Cabinet of Ministers of Ukraine, a tax pledge shall be subject to a free registration in respective state registers set up in accordance with law.

5. Within 3 working day from the day when a tax debt arose, the State Revenue Service authority shall send to the taxpayer, a written notification of the fact that his assets and property rights are charged against his tax debt.

(2) The taxpayer whose property is charged against his tax debt shall notify each of the next chargees of the tax debt. The chargor shall compensate for the losses incurred by the chargees as a result of his non-fulfillment of this obligation.

(3) The taxpayer whose property is charged against his tax debt shall possess and use it at his discretion, subject to the duty to ensure that such property is intact.

1. Alienation of assets and property rights that are charged against a tax debt shall be effected only upon a written consent of the State Revenue Service authorities at the taxpayer’s location, except for goods in circulation if such goods are being sold at the prices not lower than the normal (usual) prices.

2. Taxpayer’s violating the requirements stipulated in paragraph (3) of this Article shall be recognized as tax evasion.

3. A prohibition by State Revenue Service authorities against taxpayer’s executing the agreements mentioned in subparagraph 1 of paragraph (3) of this Article may be challenged before a higher State Revenue Service authority or before a court.

(4) Claims by the State Revenue Service authorities to the assets and property rights that are charged against a tax debt shall have a priority over any other rights in respect of these assets and property rights, except when such rights arose and were duly legalized before the tax pledge.

(5) A tax pledge shall be terminated upon repayment of the tax debt or its write-off in accordance with the established procedure.

(6) After 90 days from the day when the tax debt arose, in case such debt is not repaid from the taxpayer’s and his debtors’ funds (of if such repayment was not made in full), the State Revenue Service authorities may recover the tax debt from taxpayer’s assets and property rights that are charged against the tax debt.

1. An imposition of recovery on taxpayers’ real property and property rights, including securities, charged against the tax debt shall be ordered by court upon a filing by the State Revenue Service authority (this shall not apply to individuals’ real property and property rights).

2. An imposition of recovery on taxpayers’ chattels charged against a tax debt shall be made in an extra-judicial manner (this shall not apply to individuals’ chattels).

(7) Within the period specified in paragraph (6) of this Article, the State Revenue Service authority shall earmark the taxpayer’s charged property that will be sold to repay the tax debt from the proceeds.

1. The listing of the property to be sold shall be formalized by an inventory report.

2. The procedure on assessment and sale of the chattels charged against the tax debt shall be specified by the Cabinet of Ministers of Ukraine.

3. If the property determined to be sold cannot be sold, it shall be returned to the chargor. At the same time, other taxpayer’s property shall be earmarked for sale with the view to repaying the tax debt.

4. If the proceeds from the sale of the property charged against the tax debt should exceed the amount of the chargor’s tax debt, the difference shall be returned to the chargor.

5. Costs incurred in connection with the sale of the chattels charged against the tax debt shall be compensated from the amounts of proceeds from such sale.

6. Upon finalizing all settlements, the State Revenue Service authority shall send an appropriate notification to the chargor.

(8) If the taxpayer should repay in full, his tax debt at any moment before the day the sale of the chattels is scheduled to take place, the State Revenue Service authority shall make a decision to terminate the tax pledge of the property and property rights.

1. If the repayment of the tax debt was made before the sale of the chattels earmarked for sale, the sale procedure shall be canceled.

2. If the sale procedure should be canceled in accordance with paragraph (8) of this Article, the taxpayer shall compensate for the costs related to the organization of the sale of such chattels.

(9) Proceeds from the sale of the taxpayer’s property that was pledged against his tax debt shall be charged to such taxpayer’s financial results and shall be subject to taxation in accordance with this Code.

(1) In case a legal entity having tax liabilities (a tax debt) is wound up pursuant to the decision of its owner (owners) or bodies of this legal entity authorized by him (them) to adopt such a decision, the assets, property rights and funds of such legal entity that are accounted for on the liquidation balance sheet shall be first used to discharge in full, the said liabilities to the budgets (except for the cases where other order of priority is explicitly provided by law), including the unpaid part of the debt that was restructured in accordance with the legislation of Ukraine.

(2) The rule established by paragraph (1) of this Article shall also apply in the case of a winding-up of branches (departments), representations of legal entities – business subjects.

(3) If funds of a legal entity in the case of its winding-up, including the proceeds from the sale of its property, should be insufficient to discharge its tax liabilities (to repay its tax debt) in full, the said liabilities to budgets shall be discharged by founders of such legal entity if, in accordance with law, the charter or other foundation documents, they are obligated to answer for the liabilities of the legal entity.

(4) If the funds raised after the winding-up of a legal entity and the imposition of recovery on the founders of such legal entity should be insufficient to repay the tax debt, the tax debt of the wound-up legal entity shall be recognized as a bad debt and written off in accordance with the procedure to be established by the Central Authority of the State Revenue Service of Ukraine.

(1) When legal entity business subjects are reorganized in accordance with the legislation of Ukraine, their tax liabilities shall be settled in accordance with the following procedure:

a) in the event of a merger between two or more legal entities (structural divisions of legal entities) the new legal entity resulting from such reorganization shall assume all rights and obligations with regard to the tax liabilities (tax debts) of legal entities based on which is was incorporated;

b) in the event of a division of legal entities into two or more legal entities (or if a new legal entity is singled out of another legal entity), the new legal entities resulting from such division shall assume all rights and obligations with regard to the tax liabilities (tax debts) that arose before the reorganization.

b1. The said liabilities shall be distributed among the successors of the reorganized legal entity in proportion to the portions of assets obtained by them from such legal entity in the course of reorganization. If one or more such successors are not liable for the taxes in respect of which the tax debt of the reorganized legal entity arose, the liabilities shall be distributed in proportion to the portions of assets obtained by the successors that are liable for such taxes;

c) where reorganization is carried out in other forms, differing from those mentioned in subparagraphs a and b of paragraph (1) of this Article, the legal entity resulting from such reorganization shall assume all rights and obligations in respect of the liabilities of legal entities that arose before such reorganization.

(2) A legal entity – business subject having a tax debt, including any legal entity that took advantage of the right to the restructuring of its tax liabilities (its tax debt) shall be obligated to timely notify the State Revenue Service authority of the decision to carry out a reorganization and provide it with the plan of such reorganization. If the State Revenue Service authority should decide, based on the plan provided to it, that the reorganization could lead to the unsatisfactory discharge of the existing tax liabilities (the unsatisfactory repayment of the tax debt), it shall be entitled to make a decision on:

a) the distribution of tax liabilities (tax debts) of the legal entity (including the liability to pay a restructured debt) among its successors based on the expected profitability (the expected liquidity) of such successors without applying the principle of proportional distribution stipulated by subparagraph b of paragraph (1) of this Article;

b) repayment of any tax debts prior to any reorganization that would result in the distribution of assets of the legal entity;

c) instituting, for the reorganized legal entity and its successors, a joint responsibility for the repayment of any tax debts;

d) charging all assets of a legal entity that resulted from the merger of other legal entities as security against the tax debt, if one or more such legal entities had tax debts, including any restructured tax debts.

(3) Any reorganization of a legal entity shall not change the terms of discharging the tax liabilities by its successors.

(1) Tax liabilities of an individual who died or was proclaimed as dead by court shall be discharged by his heirs who inherited his property (except for the state), within the limits of the value of the inherited property and in proportion to their shares in the inheritance.

1. State Revenue Service authorities shall advance claims to the heirs in accordance with the civil law of Ukraine regulating the advancement of claims by the bequeather’s creditors.

2. Upon termination of the period prescribed for the legalization of the inheritance, the bequeather’s tax liabilities (bequeather’s tax debt) shall become the tax liabilities (the tax debt) of his heirs.

3. No fines shall be accrued on the heirs’ tax liabilities (the tax debt) during the period prescribed for the legalization of the inheritance.

4. If the inheritance should pass to the state, the tax liabilities of the deceased individual shall terminate.

(2) Tax liabilities of minors shall be discharged by their parents (foster parents), guardians (custodians) before such minors grow to be fully capable.

(3) Tax liabilities of an individual who was recognized by court as legally incapable shall be discharged by his guardian.

(4) Tax liabilities of an individual who was recognized by court as missing shall be discharged by the person who was appointed, in accordance with the established procedure, to administer the estate of the missing person.

(5) Tax liabilities in the cases specified by paragraphs (2) to (4) of this Article shall be discharged at the expense of the estate (income) of minors, legally incapable and missing persons respectively, except for the case provided by paragraph (6) of this Article.

(9) If the property of a minor (except for the case stipulated in paragraph (6) of this Article), a legally incapable or missing person should be insufficient to discharge such individual’s tax liabilities as well as to pay penalties accrued, the tax debt amounts shall be written off in accordance with the procedure to be specified by the Central Authority of the State Revenue Service of Ukraine.

(10) If a court should reverse the decision recognizing an individual as missing or if it should decide to restore the legal capacity of a person who had been recognized as legally incapable, the portion of such individual’s tax liabilities written-off in accordance with paragraph (9) of this Article shall be reinstated. In such case, penalties shall not be paid for the period from the day when the court ruling to recognize an individual as missing or legally incapable came into effect up to the day when the decision to quash the ruling recognizing the individual as missing or the decision to restore such individual’s legal capacity became effective.

(1) The State Revenue Service authority shall be entitled to additionally accrue taxes for a certain tax period during three years starting from the tax returns (tax calculation sheets) filing deadline stipulated by this Code and other tax regulations.

1. The above deadline shall not apply if a tax return (a tax calculation sheet) was not filed at all or a court (a court of arbitration) has declared the taxpayer guilty of an offense related to the tax evasion during the period for which the tax accrual is being made.

2. The count-down of the limitation period shall be suspended for the time the taxpayer spent outside Ukraine, if such period is continuous and is six months or longer.

(2) If the additional accrual of any tax (or the accrual of penalties) was made before the expiry of the limitation period specified by paragraph (1) of this Article, the recovery of such amounts, agreed in accordance with the provisions of this Code, shall be effected during six years from the day of such additional accrual.

Banks and other financial institutions shall execute taxpayers’ money transfer orders to remit the amounts of taxes and penalties to the budgets within the term specified by law.

(1) After the specified deadline, the amounts of taxes not paid shall be considered to be arrears and shall be recovered along with a fine, unless the law stipulates the recovery of arrears related to certain types of payments without accruing a fine.

(2) Fines accrued on the amounts of arrears (including the amounts identified during tax inspections) per each tax shall be determined in the amount stipulated by Article 14030 of this Code, depending on the amount of arrears calculated for each day of default.

(3) The fine shall be paid in addition to the tax amounts due and irrespective of whether any other penalties were applied or not.

(4) The fine shall be paid for each calendar day of default (including the day of payment) beginning from the next day after the day specified by this Code or other tax regulations as the deadline for a certain tax remittance, of from the day when a tax deferment expires (or when the period during which taxes are allowed to be paid by installments ends).

(5) The day of settlement shall be:

a) in the event of a cash payment – the day when cash is handed over to the respective cashier’s office;

b) in the event of a money transfer via a post office or a bank – the day when the money is handed over to the post office cashier (the bank cashier);

c) in the event of a money transfer from the taxpayer’s bank account – the day when the bank debits the taxpayer’s account.

(6) The fine shall not accrue:

a) to financial sanctions;

b) to penalties that are imposed for administrative offenses.

(7) For the late tax remittance attributable to the bank, the latter shall pay a fine for each day of delay, including the day of payment, in the amount specified by this Code.

1. In accordance with this paragraph, the cashier’s offices of local self-government authorities shall pay fines for the late turning in of the cash to the banks.

2. For all kinds of payments, the day of submitting a money transfer order shall be considered the day when it was registered by the bank.

(8) Fines related to the taxes for which no exact deadlines are prescribed as well as fines related to the amounts additionally accrued as a result of tax inspections shall be paid within the terms specified by the State Revenue Service authority. The fine shall begin to accrue as from the day following the last day of the period specified by the State Revenue Service authority until the day of payment.

(9) If a tax debt was not repaid in full, the following shall be repaid in the first place:

a) the amounts of tax;

b) the fine;

c) the amounts of other financial sanctions.

(10) In the event the tax debt is recovered pursuant to a judicial decision, the costs incurred in connection with such recovery shall be covered in the first place.

(1) The amounts of fines accrued by the State Revenue Service authority shall be paid by the taxpayer on a monthly basis.

(2) The amounts of fines not paid voluntarily within the prescribed period shall be subject to recovery in accordance with the procedure stipulated by this Code.

(3) The amounts of fines accrued to the amounts of arrears shall be remitted to the budgets to which the respective taxes are to be remitted in accordance with the legislation of Ukraine.

Articles 13063 – 13070 - reserved