The NBU proposes to check taxes and finances before closing a sole proprietorship. The goal is to stop schemes involving drops and money laundering.
The reason is drops and financial schemes
The National Bank of Ukraine has initiated changes to the procedure for closing down individual entrepreneurs. The main goal is to combat the so-called «drop» schemes.
Such entrepreneurs open several accounts, actively conduct financial transactions, and then quickly close their business, avoiding inspections and paying taxes.
What the National Bank offers
The regulator has developed several steps to make it impossible to use sole proprietorships for money laundering:
reviewing tax and financial liabilities before liquidation;
automatic generation of liquidation declarations;
registering the closure of a sole proprietorship only after confirming the absence of debts.
Will honest entrepreneurs suffer?
The NBU emphasises that the procedure will not be a serious problem for bona fide entrepreneurs. Inspections will be carried out quickly, and the system will be automated as much as possible.
It is expected that the new rules will only complicate the work of those who use individual entrepreneurs in money laundering or tax evasion schemes.
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