Confirmation of Sources of Income

Since tax amnesty laws are entering into force in 2021, and also due to the previously adopted Laws No. 322-IX, No. 323-IX (automatic exchange of information under CRS, FATCA), it becomes clear that the year 2022 draws a line under the “uncertain” status of assets and their sources of origin. All owners of property and the amount of money they have will be determined, if they have not been previously declared.

K.A.C. Group offers to confirm assets (property) and their sources of origin through a service of drawing up the “On the Analysis of Income and Property” report for individuals in accordance with international auditing standards and requirements of Ukrainian and international legislations.

Who Needs It?

Individuals who have not submitted their annual income declarations or who wish to update the existing ones.

Why Is It Necessary?

In 2021-2022, Ukraine will be implementing BEPS standards to combat unfair tax competition: Common Reporting Standard (CRS) “Standard for Automatic Exchange of Financial Account Information in Tax Matters” and Controlled Foreign Companies (CFCs). As a result, tax authorities will automatically receive information about any foreign assets of a tax resident of Ukraine and will be able to reconcile all income received and taxes paid from them based on the data specified in the annual declaration of property and income status. In addition, it will be needed to confirm all sources of income.

Legal Significance

The report is prepared by auditors and experts in the field of financial monitoring in accordance with the International Standard for Related Services ISRS 4400 “Assignments for the Implementation of Harmonized Procedures for Financial Information”, 4th and 5th AML of the EU Directives, 40 FATF recommendations as amended for 2019, Moneyval Recommendations for 2018. The text is drawn up in Ukrainian and other (by client’s choice) languages. Attached to the report are: Auditor’s Certificate, Financial Monitoring Expert Certificate, ACAMS (Association of Certified Anti-Money Laundering Specialists) Certificate, if necessary – Forensic Expert Certificate in the field of economic expertise.

Practical Use

The report can be submitted both in Ukraine and abroad:

1) to tax authorities;

2) to any official and banking institutions (banks, insurance and leasing companies) when undergoing financial monitoring and AML compliance.

K.A.C. Group also offers individual projects for the legalization of foreign assets within the legal framework of Ukraine in the light of the application of Law 466-IX. Find out more about this service in the corresponding section: Legalization of Foreign Assets within the Legal Framework of Ukraine