Review

In this article the author analyzes the current Convention between the Government of Ukraine and the Government of the Republic of Cyprus for the avoidance of double taxation and prevention of tax deviation relative to taxes on income, as well as the latest changes to be introduced by the new Convention. Particular attention is drawn to the critical flaws of recent changes, introducing new legislation in the field of avoidance of double taxation, namely the changes concerning complications of obtaining a reduced tax rate on dividends and increasing the percentage of taxation. Also, the author emphasizes the absence as of today of special rules on the taxation of income from the disposal of shares and analyzes the changes that appear in the convention in the nearest future. Author’s research of convention and the latest amendments thereto revealing their impact on the conditions of doing legal business. In his article, "The avoidance of double taxation between Cyprus and Ukraine: the latest changes in legislation and their influence on doing business," the author explain the ineffectiveness of the existing and amended legislation in the area of avoidance of double taxation between Cyprus and Ukraine and  argues about the inevitability of capital outflow from Ukraine and the growth of the illegal use of non-resident companies for money laundering earned in Ukraine. The researcher illustrates the key flaws of  legislation and the necessity to develop the mechanism for improving the effective tax planning. The author sees the solution of the problems of the avoidance of double taxation in improving the logical reformation of the current legislation of  Ukraine without any major changes, but not to increase the tax rate and complication of doing business.

Keywords: Convention between the Government of  Ukraine and the Government of the Republic of Cyprus for the avoidance of double taxation, tax planning, tax evasion, changes to the protocol of  the Convention for avoidance of double taxation, dividends, royalties, assignment of assets, legal business.