OREANDA-NEWS. December 03, 2010. Government Working Group and representatives of small businesses that operate under the simplified taxation system, signed a memorandum of agreement on joint actions concerning the Tax Code. The signing took place after the talks, another round of which took place.

As Dmitry Tsypin the Head of the Centre for Conflict and Law said after the signing of the Memorandum and, entrepreneurs and government officials had fully understanding that tax laws needs to be changed and improved. After all, during the talks both sides spoke the same language - the language of economic, language of social interests.

"The government understands the fact that the fruitful cooperation and understanding in the society will begin only from the time when businesses and citizens will participate – through any particular boards, unions - in state institutions activities. That means we speak about civil society that is able to control the power" - Dmitry Tsypin said.

Еру Chairman of the Centre for Conflict and Law considers positive that the Council of Small and Medium Business, which lobbies for the interests of small business is established under the Cabinet.

"The meeting was very positive, and all major issues were resolved. We hope that such cooperation will continue and will improve relations in general throughout the society and lead us to economic growth"- he concluded.

According to the Memorandum, the parties agreed that it is necessary to create stable and unchanging conditions for entrepreneurs in Ukraine, which should be appropriately reflected in the text of the Tax Code.

Government and businesses have agreed to form a coordinating council for small and medium businesses under the Cabinet of Ministers of Ukraine and include small and medium businesses to the community councils and boards of the executive branch.

However, in accordance with the text of the document, 1st, 2nd, 13th and 14th section of the Tax Code will be changed according to the Parties arrangements.

The parties also agreed not to apply penalties on pension contributions accrued on 12.01.2010, for entrepreneurs who work on single tax, and to work out legislation on single social contribution till 01.01.2011.

In addition, the MOU provides for a moratorium on prosecution of the protesters. It also provides that the heads of departments who have made mistakes in preparing the Tax Code will be brought to responsibility.