The harvesting time is right in the midst. Considering that often employers do not formally register the employment of the seasonal workers, and therefore deprive them from the working experience and legal benefits, the SFS authorities carry out the operation “Harvest”. During the operation, which began in May 2019, individuals who systematically cultivate the land (both their own and rented) in order to earn profit and avoid taxation, do not have official registration as a business entity, use illegal hired workers or pay them below the minimum wage.
Thus, the SFS territorial offices have identified 2.8 million users of land with an area of more than 2.0 hectares. Since the beginning of the year, citizens who do the self-cultivating of the land shares in order to earn profit have filed more than 273.000 property and income declarations, also declared the income in the amount of 2 billion UAH, agreed the payable personal income tax in the amount of 343 million UAH and 29 million UAH of the military fee.
During May-July 2019 within the framework of operation the number of 60 thousand citizens who receive income from the sale of agricultural products and 5 thousand citizens who provide services for cultivating and harvesting have been additionally involved in declaration process.
As follows, for example, a resident of Kharkiv region declared the income in the amount of over 1.2 million UAH from the sale of their own agricultural products and paid over 200 thousand UAH of the personal income tax and 18 thousand UAH of military fee.
In addition, more than 600 citizens have officially registered for continuing the business activity. Also, 388 business entities that used hired labor without proper clearance have been identified.
It should be noted that individuals who systematically carry out the business activity are obliged to undergo the state registration of such activity. In the case of detection of such activity without the state registration within the framework of operation “Harvest” by the SFS authorities, a protocol on the administrative offense is prescribed (Article 164 of the Code of Ukraine on Administrative Offenses) followed up by a court case for administrative prosecution.
As follows, for example, during the inspection of a citizen who cultivates the land of over 50 hectares single-handedly, the tax authorities have found out that he carries out his activity without the state registration. Protocol on the administrative offense has been complied and sent to the court. The specified citizen has been brought to administrative responsibility in the form of a fine in the amount of 17 thousand UAH.
According to the results of planned on-site documentary inspection of one Limited liability company that carries out the cargo transportation of grain, the number of 71 underemployed workers that were not properly registered have been identified. The audit materials have been submitted to the General Directorate of the State Labor in the sphere for the application of financial sanctions.
In addition, after explaining the importance of formal employment with the head of another company, the number of 234 employees has been officially hired within the month.