OREANDA-NEWS. December 19, 2014. The Government of Ukraine submits to the Verkhovna Rada of Ukraine a bill on denunciation of the Convention between Ukraine and the Republic of Cyprus and immediately launches a negotiation process with Cyprus on a new agreement to adapt with the European standards. Prime Minister of Ukraine Arseniy Yatsenyuk announced at a Government meeting.

He noted that today's meeting of the Cabinet of Ministers will concern the draft law “called to introduce a fair and honest taxation of the most profitable and large business," on the denunciation of the Convention between the Government of Ukraine and the Republic of Cyprus.

"Unfortunately, back in 2012 when the Convention was being signed with the Republic of Cyprus, it advocated a principle of protection of the wealthiest layers of the population, as it contained a zero tax rate for selling any property. That is, through an offshore company there was sold certain property and taxes were not paid, neither in Ukraine nor in the Republic of Cyprus", explained the Head of Government.

The Cabinet of Ministers submits to the Parliament a draft law and appeals to Parliament to support the denunciation of the Convention between Ukraine and Cyprus.

The Prime Minister was quoted as saying, in order to cancel this deal the Government will immediately engage in negotiations with Cyprus on a new agreement, which should meet the standards of the Organization for Economic Cooperation and Development, "The point is that the tax, which will be introduced in Ukraine, must comply with the rates and taxes, existing in the European Union’s member states".

He stressed that, according to Government calculations, as a result of the zero tax rate operations of sale of property, shares and other assets, still valid for the refusal of the Parliament to cancel the agreement with Cyprus, the total losses make up approximately UAH 6 billion per year.

"I believe that the Parliament will support this initiative, as the current Parliament represents the interests of the people of Ukraine, but not the interests of large business. At least, voting will either confirm or refute it," said Arseniy Yatsenyuk.