Abolition an the electronic register of persons connected with a legal entity-taxpayer

/02
February 2013

The Supreme Administrative Court of Ukraine (hereinafter – SACU) in the Decision dated January 22, 2013 has declared invalid art. 1 of the Order of the Cabinet of Ministers of Ukraine "On some issues of administration of taxes" from 07.01.2009 № 757 (hereinafter - the Order).

The Order provided the electronic register of associated with a legal entity - taxpayer persons. The electronic information system included information about founders, directors and even chief accountants. Tax authorities were assigned to the entry of data and maintenance of the Register. In particular, the Registry contained identification, registration and other information about such persons, as well as information on the performance of tax obligations by them.

SACU, supported the position of the previous courts, which have come to the correct conclusion that identification, registration, and other information is confidential and may be collected, stored, used and distributed without prior consent of the person only in cases specified by law.

Naturally, the Order is not such a legislation act and, therefore, violates the rights of citizens.

The positive outcome of the court proceedings should be noted, however, it does not exclude the "come back" of a similar Registry, approved by a law.