The State Regulatory Service opposed the transfer of individual enterpreuners to labor contracts

The State Regulatory Service categorically opposed the initiatives of the Ministry of Social Policy regarding the transfer of workers who work as individual enterpreuners under labor contracts, as it gives the risks to the Ukrainian economy.

As observed in the SRS, the average burden of the business entity on the simplified system of taxation is not less than that of other economic entities.

"Therefore, it is with the legal entities that we must compare the individual enterpreuners. A simplified taxation system exists to reduce regulatory pressure on small businesses through accounting and control", - they say in the SRS.

The State Tax Inspectorate notes that, along with solving the problematic issues of economic and social well-being of Ukraine, the proposed norms may prove dangerous for entrepreneurs in different types of activities that realize their abilities in the most convenient and accessible way for them. This is not just about IT, but also about freelance, consulting, outsourcing and many other activities.

There are risks of decreasing competitiveness due to rising taxes, moving Ukrainian specialists to work abroad, and reducing tax revenues to local budgets.

The SRS also drew attention to the proposed extension of the powers of the State Labor Organization (central executive body, which implements state policy on supervision and control over the observance of labor legislation) and its territorial bodies. The draft stipulates that the fact of the existence of labor relations shall be established by the inspector of labor on the results of the implementation of measures of state control.

The service explains that in case of not refuting the presumption of legality of the contract, all rights acquired by the parties to the transaction should be freely carried out, and the created duties are subject to execution.

A transaction is invalid if its invalidity is established by law (void transaction). If the invalidity of the transaction is not explicitly prescribed by law, but one of the parties or another interested person denies its validity on the grounds established by law, such a transaction may be declared invalid by the court (the disputed transaction).

Article 204 of the CCU consolidates the presumption of legality of the transaction. This presumption means that the legal transaction is considered lawful, that is, it creates, modifies or terminates civil rights and obligations until this presumption is refuted, in particular, on the basis of a court decision which has become valid.

In this regard, the SRS believes that the provisions of the bill violate the basic provisions of the Civil Code.

Forecast losses to the economy that could trigger this initiative can be found on the SRS website.

On February 27, the SRS will hold a public discussion on this initiative by the Ministry of Social Policy.

We recall that the Ministry of Social Policy of Ukraine issued a draft Law "On Amendments to Certain Legislative Acts of Ukraine on Strengthening the Protection of Employees' Rights and Combating the Application of Undeclared Labor".

Read 247 times