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The Office of Economic Security should replace the tax police (Photo: fdlx.com)
Parliament is very close to creating a new body of power: the Bureau for Economic Security (BEB). This department should replace the “outdated” tax police. In fact, the BEB will become the only law enforcement agency investigating economic crimes in the country. Why this reform is necessary and what will change after it – in the RBC-Ukraine material.
Talks about the need to create a new security agency to take over the functions of investigating economic and financial crimes began immediately after the Revolution of Dignity.
In March 2014, at that time, Prime Minister Arseniy Yatsenyuk ordered the creation of the Financial Investigation Service, which would remove the powers to investigate economic crimes from the Ministry of the Interior and the Security Service of Ukraine. Then several concepts of the work of this body appeared, but none of them were finally considered by the parliament.
A source from RBC-Ukraine in law enforcement agencies says that each time the issue of political influence in the new department and its boss became an obstacle. Furthermore, neither the Interior Ministry nor the SBU were in a rush to voluntarily hand over “tasty” economic cases.
For the first time in many years, the question of creating a financial police in the form of the Office of Economic Security has come to a close. In the autumn of last year, the Rada adopted in first reading a bill developed by the finance committee of the parliament. Already today, January 28, the deputies can approve it as a whole.
Key fixes
What does the bill to create the BEB contribute? The new body, as is clear from the document, “will participate in the guarantee of the economic security of the State.” The Bureau will have about 4 thousand detectives. Basically, they will investigate the same crimes that the tax police previously carried out. We are talking about tax evasion, falsification of financial documents, infractions in the manufacture of goods subject to excise duties, etc.
In some cases, BEB detectives may investigate crimes under investigation by NABU, such as illegal seizure of state property and misuse of state budget funds. In addition, according to the bill, a new article of the Penal Code is introduced: VAT fraud. These schemes will also be able to untangle the employees of the Office of Economic Security.
The tax police will remain in the past after the creation of the BEB (Photo: 15volynnews.com)
Whereas bribery, fraud and embezzlement with the use of an official position are not included in BEB’s jurisdiction, but remain in the jurisdiction of other law enforcement agencies, including the SBU.
The deputy head of the Rada finance committee, Yaroslav Zheleznyak (Golos faction), considers this to be logical, given the details of the Office’s work. At the same time, as the popular deputy drew attention, it is important that in the second reading the text of the bill be modified to allow the transfer of powers to investigate economic crimes from the SBU to the BEB.
“BEB is not involved in the fight against corruption. Therefore, in terms of the fight against corruption, the SBU has more duplication of powers with the NABU and the Office of State Security. While the BEB will investigate crimes After all, our main problem is not even in the number of corpses, but in the fact that many of them are doing the same. Therefore, there are constant conflicts between them, “Zheleznyak explained to the publication.
The head of the Rada’s law enforcement committee, Denis Monastyrsky (“Servant of the People”), calls this key amendment for the adoption or rejection of the BEB law. In her opinion, the outcome of the vote depends on her.
“Some of the deputies are willing to vote on the bill only with this amendment. If they submit it to confirmation and fail, then the other part of the deputies, who were willing to vote for the law, no longer vote. Until now According to I understand, none of the deputies now there are not 226 votes to approve the law, “he told RBC-Ukraine.
At the same time, Monastyrsky is sure that the law should not only try to deprive the SBU of “economic functions”, but also the right to involve agents of the security services in military operations in criminal proceedings not investigated by this department. . Given all these circumstances, Monastyrsky is not sure whether the BEB law will be adopted on January 28.
Interestingly, the Security Service reform bill is also on Thursday’s agenda. During 2020, the parliament could not even pass it at first reading. All disputes surrounding it are also often based on the question of the preservation of the “economic component” in the activities of the special services.
Fight for the director
What has changed during the preparation of the BEB project between readings? The key modifications relate to the procedure for appointing the director of the new security agency. If in the first version of the document these powers were in the hands of the president, then in the final version it was decided to transfer this function to the Cabinet of Ministers.
Not least, this was influenced by the principled position of the Constitutional Court. The fact is that the KSU judges, using the example of NABU and its director Artem Sytnik, criticized the format when the head of state appoints the head of a law enforcement agency. In fact, according to the constitutionalists, the Basic Law says nothing about the powers of the president to appoint the heads of organs other than those indicated in a clear list: the Minister of Defense, the Attorney General, etc.
Taking this into account and in order to avoid pressure on BEB’s work in the future, it was decided to transfer the new body to the vertical of government. It is the Cabinet of Ministers, at the proposal of the Prime Minister, who will appoint the head of the Bureau, selected in an open contest.
Denis Monastyrsky admits that there may not be enough votes for the new BEB law (Photo: Vitaliy Nosach, RBK-Ukraine)
The bills that were being prepared in the parliament of the previous convocation also proposed to subordinate the created service to the president instead of the fiscal police. For example, the bill of the former head of the fiscal committee Nina Yuzhanina (“Petro Poroshenko Block”) in 2018 proposed to create the National Office of Financial Security and endow it with power functions. Internal Affairs Minister Arsen Avakov did not like this moment and, as a result, the draft was not accepted.
“My philosophy is that the Financial Investigation Service should be an analytical service, in which the pencil, paper and a computer should become the main weapons, that analyzes what is happening, existing report and makes a decision,” he said the then Minister of the Interior. .
In the current situation, even if the BEB law is passed, your job may be blocked even at the stage of competitive selection of the head of the bureau. The final version of the draft states that the commission will include three people from the NSDC and the Cabinet of Ministers, two from the Rada tax committee and one from law enforcement.
Yaroslav Zheleznyak admits that such a procedure for the formation of the competition commission may block his work. Furthermore, these examples are not uncommon in Ukraine. For example, the committees for the selection of the director of the RRB and the head of the SAP cannot boast of the speed and efficiency of the work.
The head of the Rada’s profile finance committee, Daniil Getmantsev (“Servant of the people”), by contrast, sees no problem in the formation of the competition committee. “We have absolutely constructive work both in parliament and in committee. Why should we block something? Also, we have a majority. And most of the opposition forces do not take any destructive positions, especially among the representatives of our committee.” . – said Getmantsev in a conversation with the publication.
Sign change
Companies are wary of attempts by the authorities to create a BEB. The European Business Association is categorically opposed to the adoption of the Getmantsev bill and urges its withdrawal. “The creation of this body in the proposed format may increase the mistrust of companies and investors in the application of the law,” said the EBA.
Among other things, the association points to an overly inflated staff of BEB detectives and an imperfect mechanism for the competitive selection of the head of the Bureau. Whereas the main complaint and concern of the company is that the tax police will simply “change the sign” and become the Office of Economic Security, but it will not be renewed in essence.
By the way, a senior source from RBC-Ukraine in the Interior Ministry is almost certain that the backbone of the BEB will be precisely the former tax policemen. “They have specific knowledge, experience and, most importantly, connections. I think 80% of BEB will be made up of former tax officials,” the source said.
In addition, there is a risk of difficulties arising during the transfer of cases from the tax police to a new authority. After all, the law provides six months for the recruitment of staff and the start of the BEB’s operation.
“This time it is enough, if there is the desire and the will to create a new body and liquidate the tax police,” Getmantsev told RBC-Ukraine. Put aside the fears that a temporary vacuum will arise and there will be “flabbiness” of affairs due to the creation of a new organ and the elimination of the old one.
Daniil Getmantsev believes that six months is enough, that BEB recruited staff and started working (Photo: Vitaliy Nosach, RBK-Ukraine)
But Ilyashev & Partners attorney Denis Nenov points to several inconsistencies that can have serious consequences. Among other things, as explained by the expert, the procedure for the entry into force of this document does not take into account the transitory provisions of the investment climate improvement law, according to which the tax police section will be excluded from the Tax Code. as of the entry into force of the BEB law. In other words, the tax police will lose their functions on the day the new agency’s law comes into force.
According to the attorney, this can create a situation where no law enforcement agency has the authority to investigate financial crimes for a certain period of time.
While the lawyer sees positive in the bill on the establishment of the BEB in the “filter” provided for the opening of criminal proceedings for tax evasion. As Nenov clarified, after the approval of the law, this will be possible only if the tax offense is determined by the act of documentary audit and other additional factual data.
Denis Monastyrsky also sees a real threat of a “loophole” in the field of financial investigations. “Of course, there will be a certain window or abyss, because even if the BEB is created, it will take time to increase the capacity and block at least the main areas of investigation,” the head of the police commission is sure.
Among the “inhibiting factors” he mentions the formation of a competition commission, the re-registration of the property of the tax police, the selection of personnel and the training of new employees. According to Monastyrsky, all of this will take at least a year, and that’s if the BEB is headed by “the right leader who will clearly set priorities.”
