Transfer to the card: payment of 23% tax is confirmed by a court decision in support of financial monitoring.

Bank cards and hryvnias Photo: Informator

The Court of Appeal upheld the legality of the assessment by the tax service of 23% tax (18% personal income tax + 5% military levy) on personal transfers between cards, if the person is unable to document their non-business nature. Lawyer Bohdan Yankiv analyzes the high-profile decision in case No. 480/9396/24 and explains how to protect yourself from additional charges.

The essence of the court delay: 4.7 million – transfer to the card is in doubt A natural person (not an FOP) who during the year made personal transfers from card to card for the total amount of 4.7 million hryvnias. The National Bank of Ukraine sent data on these transactions to the State Tax Inspectorate. DPI recognized the transfers as undeclared income and charged 23% tax (18% personal income tax + 5% military levy) on the entire amount. The man appealed the verdict in court.

Arguments of tax officials: for what reasons the tax was assessed

• Information from the National Bank. The Tax Service received official data on the card circulation of an individual from the NBU. Banks are obliged to inform about significant amounts of funds on citizens’ cards.
• Lack of source of income. The person did not act as an FOP, did not officially receive income (no salary certificate), did not declare any income. Where did the 4.7 million hryvnias on the card come from?
• Presumption of taxable income. According to the reasoning of the tax office: if the funds are received on the card and there is no evidence that it is not a profit, it is a profit that is subject to taxation at the rate of 18% + 5%.
• The onus is on the payer to prove the opposite. According to the tax legislation, the payer is obliged to certify that the funds received are not taxable income.

Lawyer’s conclusions

“The court decision in case No. 480/9396/24 is a warning for everyone who receives large transfers to the card,” says Bohdan Yankiv.

The lawyer makes the following conclusions:

• Bank statements are just an argument for the entrepreneurial nature of money
• Contracts and receipts are required for confirmation
• The responsibility of proof rests with the taxpayer, not with the tax inspectorate
• Systematic large listings attract the attention of the DPS
• 23% tax (18% personal income tax + 5% VAT) can be added to the entire amount

As the Informant reported, lawyer Bohdan Yankiv explains how to properly correspond with the tax office through an electronic office, how to check delivery and make the tax service adhere to the response deadlines. To switch to full electronic correspondence, you need to voluntarily submit a special application on the form J/F1391602.

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