Dubinskyi filed to the Rada draft law on financial reporting of NGOs

On July 27, the Verkhovna Rada of Ukraine registered draft law No,3936 on amendment of the Tax Code of Ukraine to secure publication of information on financing of the activities of the civil associations, “Detector media” reports.

The draft law was initiated by people's deputy (MP) from “Sluha narodu” Oleksander Dubinskyi.

The draft law was already filed for consideration of the top officials. 

In his memo for the draft, Oleksander Dubinskyi states that the draft is intended for “introducing a transparent reporting” for NGOs that receive over 50% of their financing from abroad. 

He thinks that approval of the draft “will allow to improve the mechanism of adherence by the civic associations of principles of transparency and publicity in their work, will promote harmonizing the provisions of the national legislation with international standards and positive practices of foreign states”.

The MP clarified that he developed this document for proper implementation of the main provisions of the draft law «On amendment of some legislative actis of Ukraine (regarding transparency of the activities of civil associations with foreign support)».

According to the document, he wants to bind civil associations with foreign support to publish (on their own website, and to file to the state registration agency every year by March 1) information on:

• names of administrators and people elected to the governing body of the civil association;
• headcount of the civil association, amount of contributions receivable for the reporting year, and data on the actual receipt of the contributions to the account of the civil association;
• total amount of income received by the civil association from individuals, enterprises, institutions and organizations;
• amount and purpose of incomes received by the civil association from abroad, and the country of origin of the funds;
• amount and purpose of the expenses of the civil association, covered at the cost of funds that came from abroad;
• participation of the civil association administrators in governing bodies of other civil associations and political parties.

If an NGO does not comply with these requirements, Dubinskyi proposes to drop it from the Register of non-profit institutions and organizations, and bind it to pay taxes, penal sanctions, and penalties.  

The MP also wants to ban such civil association or their subsidiaries from employing service of individuals and entities who pay unified taxes as groups one to three.

In addition, if the draft is adopted, NGOs will have to to fil or publish reports for the period starting from this law coming into effect on December 31to March 1, 2021.

As IMI reported before, on May 29, 2020, Oleskander Dubinskyi registered in the Parliament draft law No.3564 on amendment of some laws of Ukraine (concerning transparency of activities of civil associations with foreign support).

One of the proposed changes is ban to the former leaders of such NGOs to become heads of any state-owned, communal or government-owned enterprises, if the NGOs that they led received over 50% of their financing from abroad. The MP proposes to amend the Commercial Code with this norm.

“Detector media” reminded that, based on information of the journalists, Oleksander Dubinskyi before becoming MP was receiving grants from the U.S. himself.