Ukrainian banks have recently significantly intensified financial monitoring of transactions involving bank cards. More and more often, information about the movement of money in citizens’ accounts is transmitted to tax authorities for further verification.
This is reported by Finway
When checks may occur due to card transfers
Regular or significant amounts of P2P transfers (from person to person) attract special attention from banks and tax authorities. If a bank client consistently receives funds to their card, this activity may be regarded as a sign of entrepreneurial activity. As a result, the tax service may initiate an audit to determine the source of these funds and whether taxes are being paid on them.
What penalties can be imposed for unofficial transfers
If it is proven that the amounts in a citizen’s card account are income from unofficial entrepreneurial activity, substantial penalties may be imposed. The amount of financial sanctions depends on the volume of received funds and the nature of the violation. In some cases, citizens will have to not only pay taxes but also a fine of up to 25% of the unpaid tax amount.
“If tax authorities establish that you have been receiving systematic income without official registration or tax payments, a fine and penalty will be imposed.”
It is particularly risky to accept payments from third parties for goods or services on a personal card if these transactions are regular.
How to protect yourself from penalties
- Obtain official entrepreneur status or individual entrepreneur registration if you engage in regular commercial activity.
- Always pay taxes on income received to your card.
- Avoid regular transfers from unknown individuals without confirmation of the payment purpose.
- Keep evidence of the legal origin of funds — contracts, receipts, correspondence with clients.
Following these tips will help avoid problems with bank monitoring and tax penalties even in the event of an audit.