The National Agency of Ukraine for the Prevention of Corruption conducted an anti-corruption expertise in relation to the Law of Ukraine "On Amendments to the Tax Code of Ukraine regarding the taxation of income from activities related to the organization and conduct of gambling and lotteries", registration No. 2713-d dated 19.06.2020.
Several sources of corruption have been identified, including the following:
1) the non-inclusion of winnings received in gambling and lotteries in the total monthly (annual) taxable income of the taxpayer. According to the NAPC, this approach will create conditions for the legalization of proceeds from criminal operations;
2) the provision of tax benefits up to the complete exemption of business entities that conduct business in the field of organizing and conducting gambling from paying taxes. NAPC considers this approach to be completely unreasonable.
Thus, the following corruption factor was indicated in the official document - the unjustified application of exceptions to anti-corruption requirements, prohibitions and restrictions to a certain category of persons, restrictions on the exercise of control over them, monitoring, and other measures to prevent or combat corruption.
NAPC, in turn, made a number of recommendations that will help to exclude corruption risks from the current document. Thus, the National Agency recommends determining in the Law the deadline for the application of the zero rate for the relevant business entities, as well as to supplement p.165.1 of art. 165 of the Tax Code of Ukraine, s.p. 165.1.62 and decide that the winnings in gambling will not be included in the payer's total monthly (annual) taxable income.
At the moment, in the absence of monitoring and state control of the gambling business in Ukraine, it will be possible to carry out a number of corruption schemes for money laundering, which were obtained by dishonest, criminal means. On this issue, a recommendation from the National Agency was also developed - to exclude from the draft Law the provisions that establish exemption from taxation of the amount of winnings (prizes) in gambling and lotteries.