There has been much (well some anyway) conversation recently of those heady days in Russia of Putin's first presidency before the Yukos affair. Again there was a brief moment when we were naive enough to believe that the rule of law was going to prevail. And then Khordokhovsky went to jail and Yukos was bankrupted. Every petty Chinovnik and plenty who weren't realized that if the Kremlin could abuse the law in their favour so could everyone else. All those businesses which had turned white(ish) and were telling the (insert name of favourite corrupt government department) to take a hike when they came with the begging bowl realized it was a futile game and went back to paying bribes.
I think the nostalgia is for earlier less cynical days when we all had hope that Russia would........well not be like Russia today.
And a happy fascist holiday Holiday of National Unity to you all.
Bits from an article it today's 'Delo' business daily entitled:
“Economy returning to the shadows”
The number of business enterprises in Ukraine who paid their taxes honestly in 2006 has dropped dramatically compared to the previous year.
The Institute of economic research and political consultations calculates that Ukrainian companies paid almost 80% of what was due last year, but this year the figure is around 55%.
According to the State Tax Administration, Ukrainian financial-industrial groupings [FIGs] are taking advantage of the links between their numermous enterprises to set up fictitious deals and avoid payment of taxes.
The FIG's who 'minimize' their financial responsibilities to the greatest extent, according to deputy head of the STA Mykola Romaniv, are 'Privat', 'Industrial Union of Donbas' [IUD], and 'Interpipe', [owned by Kolomoyskiy, Taruta/Hayduk, and Pinchuk resp.]
Akhmetov's System Capital Management, [SCM] was not mentioned on the list of transgressors. [What a surprise..]
Romaniv said that in order to minimize their VAT payments, the FIGs use 'pseudo-exporting' operations to obtain refunds [Well, well, well..]
“The mentality of Ukrainians is such that does not accept taxes which can be recompensed from the budget. If there is even a minimal possibility of return of tax from the budget, then there will certainly be abuses. To administer this nightmare in the present form is quite impossible, ” considers Dmitriy Svyatash, member of the VR committee on questions of finances and bank activity. [It's all the fault of Ukrainians' mentality then.]
Meanwhile other companies are complaining that they they are not receiving the VAT repayments to which they are entitled.
Newly appointed NSDC secretary Vitaliy Hayduk [see above] has recently been asked by the President to sort out the problem of VAT fiddles - obviously the right man for this vital task.
See also VAT-man Azarov
[composed and posted with ecto]
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