Penalties for card transfers: when the tax authorities might take an interest
This is according to lawyer Roman Simutin.
The mere fact that money is credited to a bank card does not automatically give rise to a tax liability. It is the individual’s income that is subject to tax.
According to lawyer Roman Simutin, if the funds do not constitute income or tax has already been paid on them, they are not taxed again.
Risks arise when funds that appear to be income are regularly deposited into an account but are not reflected in tax returns and have not been taxed.
Who faces fines
The greatest risks concern people who are effectively conducting business activities via personal bank cards without registering as a sole trader.
According to Simutin, there have already been cases involving sales via OLX. In such cases, regular deposits may raise questions with the tax authorities if they appear to constitute systematic earnings.
If the tax authorities prove that untaxed income has been received, the individual may be charged additional taxes, fines and interest.
Interest, in accordance with Article 129 of the Tax Code of Ukraine, is charged for each day of delay.
Can the tax authorities see bank cards?
Simutin noted that the tax authorities do not have automatic access to individuals’ bank accounts, as information on the movement of funds is subject to banking secrecy.
At the same time, banks are obliged to carry out financial monitoring, check suspicious transactions, request documents regarding the origin of funds and notify the relevant authorities.
Access to account information may be granted to tax authorities only in the cases and in the manner prescribed by law. In particular, this refers to a tax audit or a court order.
When there are no taxes
The lawyer emphasises: not every transfer to a card constitutes income.
If the money was a debt repayment, assistance from relatives or another transaction that does not constitute income, no automatic tax liability arises.
Similarly, there should be no double taxation if tax has already been paid on these funds.
Problems may arise precisely when regular inflows show signs of business activity, but the person does not declare such income and does not pay tax.
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