Ukraine, Kiev, Dec. 18 / Trend , Z.Novosvitski/ On Dec. 17, the Verkhovna Rada (Parliament) of Ukraine did not support the Bill on denunciation of agreement between the government of the Union of Soviet Socialist Republics and the government of the Republic of Cyprus for avoidance of double taxation with respect to incomes and property. Factions of the Communist Party of Ukraine (CPU) and the Party of Regions did not vote as a whole, and only one MP from the Lytvyn's Bloc voted for the Bill.
CPU MP Adam Martynyuk said that Communists could not vote for denunciation of the agreement because was signed in the USSR. According to Deputy Finance Minister David Fudashkin, this agreement stipulates for exemption from taxation of incomes earned on the territory of Ukraine or Cyprus, including dividends, interests, royalties, income from the property sold.The agreement created a favourable environment for the residents of Ukraine to carry abroad large amounts of funds legally and free of any taxes, said Deputy Minister. The provisions of the agreement are used by many Ukrainian enterprises to create various tax liability minimization schemes, said Fudashkin.
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