REFORMING UKRAINIAN TAX LEGISLATION IN THE CONTEXT OF INTRODUCING THE GENERAL ADMINISTRATIVE PROCEDURE: CHALLENGES AND PROSPECTS

Abstract

The article examines the state of adaptation of Ukraine’s tax legislation to the standards of the general administrative procedure in connection with the adoption of the Law of Ukraine «On Administrative Procedure».

The study explores the innovations of Draft Law No. 14196 dated November 7, 2025, which provides for a significant optimization of the conceptual and categorical framework, a revision of procedural deadlines, and the introduction of new algorithms for implementing administrative procedures in the tax sphere.

It is emphasized that in the event of a conflict between the provisions of the Tax Code of Ukraine and the Law of Ukraine «On Administrative Procedure», special legislation takes precedence. This effectively allows for the bypassing of certain requirements and principles of the general administrative procedure.

The article reviews cases where the principles of proportionality and the presumption of lawfulness of an individual’s actions remain without proper regulation, most acutely manifested in the procedures for suspending the registration of tax invoices (VAT blocking). The procedure for «unblocking» a tax invoice and adjustment note allows for ambiguous interpretations of the taxpayer’s lawfulness. However, instead of interpreting the rules in favor of the taxpayer, the procedure involves intermediate actions and decisions that are unfavorable to bona fide business entities.

It is noted that Draft Law № 14196 does not fully resolve the issue of discretionary powers, and a procedural barrier remains regarding the independent correction of errors by the tax authority.

If this rule were implemented into tax legislation, the tax authority would have to terminate the effect of a tax notification-decision in such cases even without an administrative complaint being filed.

The adoption of Draft Law № 14196 dated November 7, 2025, will contribute to the harmonization of Ukrainian tax legislation with the standards of general administrative procedure, enabling the effective resolution of disputes in the pre-trial stage.

At the same time, it is deemed necessary to minimize the discretionary powers of tax authorities by ensuring the proper implementation of the principles of proportionality and the presumption of lawfulness of a person’s actions into tax law. Special attention is required for the introduction of an effective mechanism for the independent correction of errors by the controlling authority, which would facilitate the realization of the «self-control» institute in administrative activity.