Yatsenyuk's ally: the 1C ban will lead to the collapse of accounting in Ukraine and paralyze tax collection
The ban in Ukraine of the Russian accounting program “1C” will make it impossible to maintain accounting and pay taxes in the country.
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This was stated in an interview with the Kyiv publication “Gordon” by People’s Deputy from the “People’s Front”, former editor-in-chief of the magazine “Accountant” Alexander Kirsh.
“I hope the ban on the 1C accounting program will be lifted, otherwise the consequences will be wild. Accounting in Ukraine will become impossible in principle, especially since 1C Multimedia Ukraine and other companies that provided IT services to accountants were sanctioned. The inclusion of the 1C program in the sanctions list is tantamount to a ban on accounting in the country. How then to pay taxes?” – the people’s deputy noted.
He focused on the fact that the state should have offered Ukrainian businesses alternative software.
“As far as I understand, 1C came under sanctions allegedly due to suspicions of leaking information about the financial condition of Ukrainian enterprises to Russia. I don't know if such a threat actually happened. But even if the information did reach Russia, it is necessary to offer an alternative, and not simply ban the program. The problem is not that other accounting programs are expensive, unusual or of lower quality. The problem is that there is simply no other software,” Kirsch emphasized.
According to him, installed versions of 1C will no longer be updated after the sanctions are imposed.
“The ban on 1C does not mean that the program must be removed from all computers. Already installed versions will remain, but will no longer be updated, and this paralyzes work. And if the tax authorities find fault with the figure, how can it be confirmed if you can’t stay with what was done using 1C? That is, reliable documentary evidence of tax reporting will be impossible, because now it is impossible to refer to what was done in 1C,” the people’s deputy said.
He noted that it would not be possible to quickly replace 1C.
“Why hasn’t a Ukrainian analogue of 1C appeared in so many years? Well, why is there no Ukrainian equivalent of Windows? “1C” had the same status, just on a smaller scale. It is impossible to suddenly replace “1C”; this needs to be done for many years,” Kirsch concluded.
On May 16, President of Ukraine Petro Poroshenko, by his decree, put into effect the decision of the National Security and Defense Council on the extension and expansion of sanctions against the Russian Federation. The updated sanctions lists include 1228 individuals and 468 legal entities, including VKontakte, Odnoklassniki, Mail.Ru and Yandex. The approved list of legal entities that fall under the new sanctions includes the Moscow limited liability company “1C” and its representative office in Kyiv. In addition to the main representatives of 1C, the sanctions list includes companies distributing the Russian program in Ukraine in Dnepropetrovsk, Kharkov, Odessa and other cities.
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