On July 21, 2021, the Law of Ukraine “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Stimulating De-Shadowing of Income and Improving the Tax Culture of Citizens by Introducing One-Time (Special) Voluntary Disclosure by Individuals of Their Assets and Payment to the Budget of One-Time Duty” No. 1539-IX, dated 15 June 2021 (“Tax Amnesty Law”), entered into force.
The Tax Amnesty Law also introduces an antitrust amnesty. This means that liability for violations of Ukrainian merger control rules may be reduced for individuals.
In particular, an individual that completed a transaction without obtaining prior approval/merger clearance of the Antimonopoly Committee of Ukraine (if such clearance was required) could now be subject to a fixed fine amounting to UAH 20,400 (€600).
Please note that the fine set by law amounts to up to 5% of a group’s turnover. However, in practice the imposed fines are usually significantly lower (in the range of UAH 170,000 – UAH 510,000, the equivalent of €5,000 – €15,000).
In order to enjoy antitrust amnesty and reduced liability, individuals should meet special requirements, namely:
- Transactions took place before December 31, 2020.
- Transactions did not lead to monopolization or a substantial restriction of competition on the relevant market.
- They submit the special returns and pay the special duty.
- They file a merger control filing with the Antimonopoly Committee of Ukraine by October 1, 2022.