A working meeting was held between representatives of the Prosecutor General’s Office (PGO), the business community, and leading Ukrainian associations. The meeting served as a platform for an open discussion regarding systemic issues in the interaction between business and the law enforcement system.
Representing the PGO were Deputy Prosecutor General Maksym Krym and Department Head Ashot Gevorkian, who addressed inquiries from the business community.
Parallel Tax Disputes and Criminal Proceedings — A Key Point of Tension
The central theme of the meeting was the practice of investigating criminal proceedings for tax evasion concurrently with the appeal of Tax Assessment Notices (TANs).
The position of law enforcement is that the Bureau of Economic Security (BES) has the right to act independently of administrative or judicial appeal procedures. However, the business and legal communities highlighted the significant risks of this approach.
Tetiana Lysovets, Vice President of the Ukrainian Bar Association, emphasized: “Parallel investigations are justified only in cases of suspected fictitious business transactions. If a TAN arises due to conflicting interpretations of legislation—which constitutes the vast majority of cases—tax evasion can only be discussed after a final decision following the appeal process has entered into force.”
She also proposed bringing this issue to a broader professional discussion involving the State Tax Service, BES, the Prosecutor’s Office, and the Supreme Court.
Business Expects Clear and Predictable Rules
Participants repeatedly stressed that the problem today lies not only in law enforcement practices but also in the lack of a unified approach to interpreting legal norms.
Darya Svystula noted: “Business needs not just control, but predictability. When the same situation can be interpreted differently, it creates risks that are difficult to calculate.”
Yosyp Buchynskyi underlined: “It is crucial to clearly distinguish between a tax dispute and a criminal proceeding. These are processes of different natures, and their parallel application must be balanced.”
The Balance Between Control and Development
The discussion also focused on the necessity of maintaining a balance between state interests and the ability of businesses to function.
Yevhen Riyako stated: “The state’s task is not only to ensure control but also to create conditions where business can operate without the constant risk of criminalizing commercial activity.”
Serhiy Klyutsa added: “The key is trust. If business does not feel protected, it will not invest or develop.”
The Necessity of Systemic Changes
Participants paid special attention to the need for improving interaction mechanisms between state authorities. Artem Krykun-Trush noted: “Today, a comprehensive approach is required: coordinated actions by the State Tax Service, BES, and the Prosecutor’s Office, along with clear guidance from judicial practice.”
Why This Is Important for Business
The issues raised during the meeting are systemic and affect all sectors of the economy, including the fuel and energy market. For business, the following remains critically important:
- Predictability in law enforcement;
- Absence of duplicated procedures;
- Clear separation of tax and criminal processes;
- Stability of the regulatory environment.
Further Steps
Following the meeting, participants supported the need for continued dialogue and the development of joint solutions. The business community emphasizes: effective interaction with the law enforcement system is possible only when there is a balance between the state’s fiscal interests and the protection of diligent businesses.
