Grounds for Conducting Unscheduled Inspections

Tax and other regulatory authorities have the right to conduct not only scheduled but also unscheduled inspections of business entities. Unscheduled inspections are an important state control mechanism aimed at identifying violations of the law that may not have been detected during scheduled inspections. For businesses, it is critically important to understand the legal grounds that allow regulatory authorities to initiate such inspections.

What Is an Unscheduled Inspection?

An unscheduled inspection is an inspection conducted outside the approved inspection schedule and without advance notice within the timeframes established for scheduled inspections. It may only be initiated on the legal grounds provided by law.

Main Grounds for Conducting Unscheduled Inspections

According to current Ukrainian legislation, the main grounds for conducting unscheduled inspections include:

1. Receipt of Complaints, Applications, or Reports

An unscheduled inspection may be conducted based on complaints or reports from citizens, counterparties, or other authorities containing information about possible violations in a company’s activities.

2. Detection of Violations During Previous Inspections

If violations requiring additional examination are discovered during a scheduled inspection or other control measures, regulatory authorities may initiate an unscheduled inspection.

3. Court or Prosecutor’s Decision

An unscheduled inspection may be ordered based on a court decision or instructions from the prosecutor’s office within the framework of criminal or administrative proceedings.

4. Information From Law Enforcement Authorities

Reports from the police, the Security Service of Ukraine, or other law enforcement agencies regarding possible violations, including tax evasion or other offenses, may also serve as grounds for an unscheduled inspection.

5. Failure to Provide Required Documentation

If a taxpayer refuses to provide documents or information required for inspection purposes, this may become grounds for conducting an unscheduled inspection.

6. Inspection After Long Absence of Scheduled Audits

If a company has not been inspected for a significant period and there are reasons to believe that it may be violating the law, regulatory authorities may initiate an unscheduled inspection.

Rights and Obligations of Businesses During Unscheduled Inspections

During an unscheduled inspection, taxpayers have the same rights as during scheduled inspections, including the right to:

• receive inspection-related documents;
• participate in the inspection process;
• appeal unlawful actions of regulatory authorities.

Businesses also have the right to request documents confirming the legality of the inspection, including the order or directive containing the justification for conducting the inspection.

How the Ukrainian Bar and Real Estate Association Assists During Unscheduled Inspections

• consultations regarding the legality of inspection grounds;
• legal analysis of documents accompanying the inspection;
• representation of business interests during inspections;
• appeals against unlawful actions of regulatory authorities.

Unscheduled inspections are a serious challenge for businesses and may result in significant financial and reputational losses. It is important to understand the grounds for such inspections and be prepared to protect your rights. Professional legal support helps minimize risks and respond effectively to any actions by regulatory authorities.