Kyiv, November 26 (Interfax-Ukraine) – The adoption of a draft law on tax compromise, which foresees the voluntary revision of unpaid tax liabilities by payers of profit tax and value added tax in the amount of 5%, will create additional opportunities for corruption and will impose larger fiscal burden on small- and medium-sized businesses, President of the Association of Private Employers (Kharkiv) Oleksandr Chumak said at a press conference at Interfax-Ukraine on Tuesday.

"We strongly oppose tax compromise in the current interpretation. In fact, this will be an additional fiscal burden on small- and medium-sized businesses and the increased opportunities for corruption. We believe that instead of tax compromise the tax amnesty should be conducted jointly with the implementation of a package of tax reforms without any conditions," he said.

Chumak said that tax compromise implies that all contractors of an enterprise that will declare hidden taxes will face off-schedule checks.

"Don't forget that the existing state system forced small- and medium-sized businesses to go to the shadows in order to compensate extra expenses of business, apart from taxes, – bribes and the cost of tax administration which was set too high. The money were used to pay to bribes to officials and it is also the envelop wages. Business today was proposed that it will pay the bills once again," he said.

Chumak pointed at the problem of lobbying the interests of small- and medium-sized businesses. He said that the interests of large business are presented by business associations and high-rank officials.

He positively assessed plans of political forces which signed the coalition agreement to stipulate the liabilities of the state to guarantee the refunding of value added tax, the terms of its refunding and responsibility of the tax agencies for the non-observation of the terms in the document, as well as the reformation of the tax invoice administration system.

He also supported the plans of the coalition to conduct the tax reform in part of reducing the total number of taxes from 22 to nine and the decrease of the single social fee to 18%.

He said that the coalition agreement does not include the issue of affordability of financial resources for small- and medium-sized businesses.