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Interfax Ukraine: ‘No Need to Declare’ Captured Russian Tanks on Tax Forms

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Ukraine's tax authorities advised citizens there was "no need to declare" captured Russian tanks on tax documents.

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On March 2 2022, at least six posts on Imgur and countless posts on Facebook and Twitter covered a rumor that Ukraine’s tax authorities had issued guidance indicating citizens need not declare captured Russian tanks as taxable income or assets:

‘Ukraine Looters Taped to Poles’
‘Ukraine Looters Taped to Poles’

Civilians don’t have to pay tax on captured Russian equipment

A Fark.com account shared a version of the claim on March 2 2022. A separate variation appeared on Reddit’s r/DamnThatsInteresting, in a post titled “The Ukraine tax office just announced, that captured Russian tanks don’t need to be declared as income”:

The Ukraine tax office just announced, that captured russian tanks don’t need to be declared as income. from Damnthatsinteresting

Two of the Imgur posts showed screengrabs of tweets making the same assertion about tax authorities in Ukraine and captured Russian tanks:

The first of those two tweets linked to an item by Kyiv-based Ukrainian news agency Interfax Ukraine, published on March 1 2022. It was titled “No need to declare captured Russian tanks, other equipment of invaders as income – NAPC,” and it loaded in a native translation to English.

Interfax Ukraine identified a source for the claim, Ukraine’s National Agency for the Protection Against Corruption (NAPC), and reported:

Ukraine’s National Agency for the Protection against Corruption (NAPC) has declared that captured Russian tanks and other equipment are not subject to declaration.

“Have you captured a Russian tank or armored personnel carrier and are worried about how to declare it? Keep calm and continue to defend the Motherland! There is no need to declare the captured Russian tanks and other equipment, because the cost of this … does not exceed 100 living wages (UAH 248,100),” NAPC’s press service said.

Also, there is no need in this case to submit reports of significant changes in property status within 10 days.

Ukraine’s NAPC (Національне агентство з питань запобігання корупції) was created after the Euromaidan revolution; it has been functioning since 2016. Its role is to detect, monitor, and provide tools to deal with public deception and manipulation.

Readers on social media seemed to infer that Ukraine’s NAPC was a one-to-one equivalent to the United States’ Internal Revenue Service (IRS). One of the above tweets (from the Polish language account @outrid3rs) linked to the source material on the NAPC’s website.

Its title (“Роз’яснення від 28.02.2022 №2 щодо застосування окремих положень Закону України «Про запобігання корупції» стосовно заходів фінансового контролю в умовах воєнного стану”) was automatically translated by Google as “Clarification dated 28.02.2022 №2 on the application of certain provisions of the Law of Ukraine ‘On Prevention of Corruption’ regarding measures of financial control in martial law.” A translated preface explained:

EXPLANATION on the application of certain provisions of the Law of Ukraine “On Prevention of Corruption” regarding measures of financial control in martial law

In accordance with paragraph 15 of Part 1 of Art. 11 of the Law of Ukraine “On Prevention of Corruption” The National Agency for the Prevention of Corruption provides clarification, methodological and advisory assistance, in particular, on the application of the provisions of the Law and regulations adopted for its implementation….

Numbered sections followed, the first reading:

1. Regarding the need to declare and submit a notice of significant changes in property status in respect of property and funds received from 24.02.2022 by the declaring subject and his family member from third parties to assist the security and defense forces of Ukraine and (or) persons who suffered as a result of the aggression of the Russian Federation

The declaration shall contain information on the income that the subject of the declaration or members of his family received during the reporting period (paragraph 7, part 1 of Article 46 of the Law).

In the conditions of martial law and armed aggression of the Russian Federation against Ukraine, many declaring subjects and members of their families are involved in fundraising, property for the needs of the Ukrainian army and (or) persons who suffered as a result of armed aggression.

We explain that the funds received for such purposes are not the personal income of the subject of the declaration and a member of his family, but instead is a manifestation of the unity and cohesion of the Ukrainian people in the fight against racist invaders.

Such funds shall not be reflected in the declaration and notification.

A third and final section contained what was likely the source of the claim that Ukrainian tax authorities indicated seized Russian tanks were not considered “taxable income.” In that section, the document stated it was “impossible to assess such objects” (such as “hostile military equipment, weapons and other armor”) as “scrap,” presumably with little to no inherent value:

3. Concerning the declaration of movable enemy property acquired in battle by the subject of the declaration and a member of his family during the defense of the Ukrainian state

As a general rule, the declaration shall contain information on valuable movable property, the value of which exceeds 100 PM, which belongs to the declaring subject or members of his family on the right of private property, including joint property, or is in his possession or use regardless of the form of the transaction as a result of which such a right was acquired.

Information on vehicles and other self-propelled machines and mechanisms is indicated regardless of their cost.

Data on the object of declaration, which was in the possession or use of the subject of declaration or members of his family, shall be indicated in the declaration, if such object was in the possession or use as of the last day of the reporting period or for at least half days during the reporting period (paragraph 3, part 1, paragraph 3, part 2, Article 46 of the Law).

We explain that during the Ukrainian Liberation War hostile property acquired in battle by the subject of the declaration / a member of his family is not subject to reflection in the declaration, as acquired not as a result of a transaction, but in connection with full-scale aggression from 24.02. 2022 of the Russian Federation regarding the independent and sovereign Ukrainian state as a continuation of the insidious attack of the Russian Federation on Ukraine launched in 2014.

Thanks to the courage and victory of the defenders of the Ukrainian state, hostile military equipment, weapons and other armor – scrap. It is impossible to assess such objects in accordance with the Law of Ukraine “On Valuation of Property, Property Rights and Professional Valuation Activity in Ukraine” in order to determine whether their value exceeds the declaration threshold (100 PM).

At the same time, the National Agency for the Prevention of Corruption continues to provide the technical capacity to report significant changes in property status regarding the acquisition of objects seized from the racist army, if the declarant subjects wish to do so.

Glory to Ukraine!

A March 1 2022 Facebook post published by the verified page of Ukraine’s NACP (Національне агентство з питань запобігання корупції – НАЗК) was again automatically translated, and it certainly sounded somewhat tongue-in-cheek:

🛩 Grab a Russian tank or BTR and worry about how to declare it? Keep calm and continue to protect the Motherland!

No need to declare seized Russian tanks and other equipment, because the cost of this shit does not exceed 100 living minimums (248 100 UAH).

Accordingly, reporting significant changes in the property within 10 days in case such a junk is not necessary (so tautology).

Speaking of the law, combat trophies are not subject to reflection in the declaration for the following reasons:

🔥 they were acquired not because of the imposition of any kind of law, but because of the full-scale aggression of the 24.02.2022 Russian Federation regarding the independent and sovereign Ukrainian state as a continuation of the started in 2014 underprivileged the Russian Federation attack on Ukraine in order to destroy the last;

🔥 thanks to the bravery and zitz of the defenders of the Ukrainian state, the enemy of military equipment usually comes to you already destroyed and removed from order, which is impossible to conduct its assessment in accordance with the Law of Ukraine “On the assessment of property, property rights and professional assessment activity in Ukraine”. And therefore, it is impossible to find out how much such property costs.

So the Russian tank, go fuck with ̶ ̶d̶e̶k̶l̶a̶r̶a̶c̶i̶i̶.

Meanwhile, NAZK continues to provide technical possibility to submit reports of significant changes in property status regarding the acquisition of objects captured by the Russian army, if the desiring entities of declaration desire to take such actions.

Detailed explanation: https://bit.ly/3K35Jj0

An Australian news outlet described the statement as a “jab” on March 2 2022. The NACP guidance was interpreted as primarily humorous by the Times of Israel in a March 1 2022 item:

On the Facebook page for the National Agency for Corruption Prevention, authorities announce that captured Russian tanks do not need to be declared to tax authorities because “this shit isn’t worth enough” to report. (The minimum is 100 cost of living units, a unit being 248 Hrevniya (about $8), it notes.) … The tongue-in-cheek post, which authorities say does actually reflect current national tax policy (which may change after the war) …

In early March 2022, myriad social media posts claimed the “Ukrainian tax office” issued guidance indicating captured Russian tanks were not considered taxable assets. Ukraine’s NACP did issue a statement and attendant Facebook post to that effect, but some of the context was lost in translation. In the more direct statement on Facebook, Ukraine’s NACP said there was no “need to declare seized Russian tanks and other equipment, because the cost of this shit does not exceed 100 living minimums,” and that such equipment typically “comes to you already destroyed and removed from order, which is impossible to conduct its assessment in accordance with the Law of Ukraine ‘On the assessment of property, property rights and professional assessment activity in Ukraine.'” However, a Times of Israel item asserted the statements did “actually reflect current national tax policy” according to authorities in Ukraine.

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