Information is provided by the press service of Minrevenue

Minrevenue indicates that the volume of schemes to minimize tax liability through the instruments of fake insurance reached nearly 3 billion in 2013. To prevent the use of such practices by insurance companies and unscrupulous taxpayers, Ministry of revenue and duties insists on filling in the tax return of insurance companies the data on income of insured clients. However, on behalf of Minister Alexander Klimenko, an initiative of the Ministry has been finalized and does not require insurers providing personalized information for each client.

"Tax law is quite loyal to the insurance market, which creates many opportunities for unscrupulous employers use insurance companies for tax evasion. For example, statistics on the results of 2013 indicates that 99 % of taxes were paid by less than half of employees in the insurance market companies. Therefore, the Ministry has a logical question regarding the activities of the other half of the insured" - said Alexander Klimenko.

According to the Minister the results of routine inspections of 50 insurance companies in 2013 revealed that almost 3 billion were derived in the scheme of tax evasion in the insurance market of the real economy.

In particular, the most common pattern is to conduct operations of fake insurance. The essence of this scheme is that reinsurance payments are directed to the "tax gaps" - the company being liquidated, using fictitious bankruptcy declaration and inaccurate reporting data.

Over the past year, more than 1000 enterprises of the real economy benefited from a schematic insurance. They were added with tax liability for 163 million on income tax.

"Analysis of aggregate data of insurance companies along with other methods of remote monitoring will enable the Ministry to control this market more efficiently, and at the same time, reduce the number of inspections of companies that are compliant taxpayers. I want to assure the Ministry has no plans to collect personal information from insurance customers, including names, addresses, phone numbers, lists of insured property" - said the Minister.

Ministry suggests specifying general information about the insured individuals, including the number of clients of the insurance company, accrued and paid amount of premiums, paid fees and so on.

Revised draft order of Minrevenue "On approval of tax return on income tax (profit) of the insurer" is posted on the website of the Ministry.