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Yatseniuk appealed to Parliament to back draft law on denunciation of agreement with Cyprus
17.12.2014 16:52 "Agro Perspectiva" (Kyiv) —
The Ukrainian Government submits to the Verkhovna Rada a bill on denunciation of the Convention between Ukraine and the Republic of Cyprus and immediately launches a negotiation process with Cyprus on a new agreement to comply with the European standards, Government Portal says referring to the Ukrainian
Prime Minister Arseniy Yatseniuk report at the Government meeting on Wednesday, December 17.
Yatseniuk said that today’s Cabinet meeting is to be focused on the draft law «called to introduce a fair and honest taxation of the most profitable and large business,» on the denunciation of the Convention between the Government of Ukraine and the Republic of Cyprus.
«Unfortunately, back in 2012 when the Convention was being signed with the Republic of Cyprus, it advocated a principle of protection of the wealthiest layers of the population, as it contained a zero tax rate for selling any property. That is, through an offshore company there was sold certain property and taxes were not paid, neither in Ukraine nor in the Republic of Cyprus,» the PM explained.
As to him, the Cabinet submits to the Parliament a draft law and
appeals to the Parliament to support the denunciation of the Convention between Ukraine and Cyprus.
Besides, the PM also said in order to cancel this deal the Government will immediately engage in negotiations with Cyprus on a new agreement, which should meet the standards of the Organization for Economic Cooperation and Development.
«The point is that the tax, which will be introduced in Ukraine, must comply with the rates and taxes existing in the European Union’s member states,» Yatseniuk admitted.
He stressed that, up to the Government calculations, as a result of the zero tax rate operations of sale of property, shares and other assets, still valid for the refusal of the Parliament to cancel the agreement with Cyprus, the total losses make up approximately UAH6 milliard per year.
«I believe that the Parliament will support this initiative, as the current Parliament represents the interests of the people of Ukraine, but not the interests of large business. At least, voting will either confirm or refute it,» Yatseniuk said.
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