On December 7, 2017, the Verkhovna Rada of Ukraine introduced amendments to Art. 172 of the Tax Code which obliged appraisers to enter information from the real estate appraisal reports into a Single Database of appraisal reports through private authorized electronic platforms for a fee.
The said electronic platforms are private entities, and the cost of their services for appraisers and notaries (i.e., their clients) is not limited and is determined by the platforms at their own discretion. Today, the platforms charge an average of 510 UAH per each appraisal report registration and verification transaction.
The function of the electronic platform is reduced to the transfer of information from the appraisal reports to the Single Database (without processing) and the transfer of the results of its processing by the state module to the appraisers, i.e., the role of “e-mail”. This makes the charge imposed by the platforms excessive and unjustified. In fact, we are talking about a legitimate corruption scheme.
On November 23, the Verkhovna Rada adopted the Draft Law No. 9260, amendments 151 and 152 which, firstly, impose the obligation to use the “services” provided by e-platforms on the notaries as well – for checking the registration of appraisal reports, and secondly, make it impossible to create independent platforms since written consent of the existing platforms is required for their admission to the market.
On November 21, the Cabinet of Ministers supported amendments to the Resolution of the Cabinet of Ministers of Ukraine dated August 21, 2014 No. 358 “On conducting appraisal for the purposes of taxation and accrual and payment of other mandatory payments charged in accordance with the law”, which, inter alia, removes the regulation on free access of appraisers and notaries to the Single Database. These changes deteriorate the legal and financial situation of appraisers and notaries and are not stipulated by the laws of Ukraine and are therefore illegal.
Civil society is also concerned about the approved amendments to the Resolution No. 358 since they have signs of artificial connivance for the extortion of funds from the population (clients of appraisers and notaries) by the electronic platforms.
However, the decision of the Cabinet of Ministers on amendments to the Resolution No. 358 provides for the revision of the document by experts and the public.
In view of the above, Reanimation Package of Reforms calls on the First Vice Prime Minister of Ukraine Stepan Kubiv to ensure revision of the amendments to the Resolution of the Cabinet of Ministers of Ukraine dated August 21, 2014, No. 358 with participation of experts and the public and to guarantee free access of appraisers and notaries to the Single Database of Reports on the Real Estate Appraisal.