The Tax Service explained why it needs data on Ukrainians crossing the border

The implementation of electronic data exchange between the State Border Guard Service and the State Tax Service serves solely to expedite procedures and is fully in accordance with current legislation. Previously, the tax service already received data on Ukrainians crossing the border, but in paper form.

Digitization will eliminate the need for paper requests and significantly reduce the time required to process information; technical configuration of the system will take about a month. 

State Tax Service spokesperson Andriy Demchenko refuted allegations of illegal actions or surveillance of citizens, emphasizing that the Tax Service had previously received this data in paper form. According to him, electronic interaction will make it possible to determine tax residency more quickly for the purpose of calculating tax liabilities, avoid double taxation, and prevent fictitious transactions.

Requests will be submitted electronically and must be accompanied by a qualified electronic signature, and responses will be provided almost instantly. In addition, the new system will help identify cases where financial documents are issued in Ukraine while the signatories are actually located abroad.

Source: State Border Guard Service spokesperson Andriy Demchenko.

As a reminder, in early August, the State Tax Service and the State Border Guard Service launched an automated information exchange.

The Tax Service has warned of a large-scale phishing attack targeting Ukrainians.