regarding THE ISSUES OF TAXATION OF CERTAIN OPERATIONS ON CHARGING LESSOR’S ROYALTY FOR EXTRACTION OF FOSSIL FUEL DEPOSITS

Abstract

The procedure for taxation of certain operations on charging lessor’s royalty for extraction of fossil fuel deposits in the period of 2015 during forensic economic examinations is considered. Based on the results of review, certain peculiarities of taxation of operations on charging lessor’s royalty for fossil fuel deposits extraction in the course of 2015 that emerged as a result of entry into force of the Law of Ukraine N 71-VIII: On amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine regrading tax reform dated December 28, 2014, have been identified.

Practical experience in conducting examinations on the issue of taxation on charging lessor’s royalty for extraction of fossil fuel deposits in the period of 2015 demonstrates ambiguity of forensic approaches, as a result of interpretation of legal norms to the extent of their understanding and of certain situations that may lead to forensic economists’ falling outside the limits of their competence which accordingly will affect the forensic expert support of justice in general.

Accordingly, it has been determined that since 2015, charging lessor’s royalty for extraction of fossil fuel deposits that are fully or partially lie at depths to 5000 meters at the time of preparation of relevant tax calculations is a subject to fixed rate in the amount of 55%.

Exclusively in case of identification in a document on examination appointment (engaging a forensic expert) of significant circumstances on the case that are vital for forensic examination and in case of availability of clarifications regarding a specific legal position which lay down a systematic analysis of the current legislation of Ukraine, namely changes to rental rates, which are introduced by the Law of Ukraine No. 71-VIII can be applied in accordance with the principle of stability of taxation only since 2016, accordingly, only a variant conclusion is to be provided, namely without taking into account such legal evaluation and separately based on a similar legal evaluation, for further adoption by court of a final decision.

The above procedure for taxing certain operations of charging lessor’s royalty for extraction of fossil fuel deposits during the period of 2015 while forensic economic examinations will ensure the most comprehensive and unbiased preparation of forensic reports on this issue.