Scheduled Audits Subject To Moratorium In 2017

On 1 January 2017, the Law of Ukraine "On Temporary Peculiarities of State Supervision (Control) in the Sphere of Business Activity" as of 3 November 2016 No. 1728-VIII (the "Law") took effect. The Law introduces a moratorium on scheduled audits by controlling agencies until 31 December 2017. The moratorium applies equally to all companies irrespective of their revenues.

Furthermore, the Law sets forth the following exhaustive list of grounds allowing a controlling agency to perform an unscheduled audit of a company:

• an individual's substantiated application regarding a breach of his/her legal rights by a company (in this case, a controlling agency will need to get an approval from the State Regulatory Service of Ukraine, and such approval has to be published on the Service's website in advance);