Experts of the Reanimation Package of Reforms group “Tax and Budget Reform” have addressed the President, the Cabinet of Ministers, and the profile Verkhovna Rada Committee with an open letter calling on them to ensure immediate establishment of the financial police

To: President of Ukraine Petro Poroshenko

        Prime Minister of Ukraine Volodymyr Groysman

          Chair of the Verkhovna Rada of Ukraine Committee

                                                                                                  on Taxation and Customs Policy Nina Yuzhanina

Dear Mr. Poroshenko,

Dear Mr. Groysman,

Dear Ms. Yuzhanina,


Today we have a situation when the effective Tax Code of Ukraine includes no provisions to determine the structure, the tasks, the functions, and the powers of the tax police and the legal status of its officers. This was highly appreciated by the national and foreign businesses operating in Ukraine, as over the last couple of years the tax police has mostly resorted to a punitive policy, using unacceptable methods of raids of masked police and confiscation of documents and servers which has brought business operations to a standstill.

Given that, the experts believe that adoption of the law on the financial police would be the most constructive solution of the problem which has arisen after the liquidation of the tax police. The latest version of the Memorandum on Cooperation between Ukraine and the IMF also includes a requirement to formalize the activity of the financial police by the end of April 2017.

Having analyzed the draft law on the financial police prepared by the Ministry of Finance with the participation of the public, the experts of the Reanimation Package of Reforms on tax and budgetary policy have concluded that this document, if adopted, will minimize corruption in the Ukrainian economy and shape favorable conditions for doing business.

In particular, this draft law provides for the following:

– transparent competitive selection to the financial police;

– downsizing (2,5 thousand employees instead of 10 thousand) combined with high salaries which should also reduce the risk of corruption;

– changing the instruments of work with the focus on in-depth analytical products;

– divesting the financial police of the right to conduct business checkups.

The RPR experts also call for:

– laying down an exhaustive list of reasons, close for the third parties and regulated by this draft law, whereby the financial police can initiate the checkup of businesses by the authorized agencies;

– to prevent overlapping of functions of governmental agencies: after the law on the financial police as a specialized agency in this field is adopted, other bodies, such as the SSU, the MIA, and the SFS, shall be divested of the functions of investigating economic crimes.

Given the above-mentioned, the RPR experts call on you to ensure that the Cabinet of Ministers considers the draft law on the financial police as soon as possible, and the Verkhovna Rada considers and adopts it immediately keeping all the key provisions.  

Experts of the Reanimation Package of Reforms group “Tax and Budget Reform”