ISSUES OF LEGAL REGULATION OF TAX AGENT DUTIES PERFORMANCE BY A DIIA CITY RESIDENT IN CASE OF LOSS OF STATUS

Abstract

Introduction. This scientific article provides a comprehensive inquiry into the operational facets of the Diia City legal regime, which serves as a cornerstone for the extensive digital transformation of the national economic framework and the establishment of an advantageous climate for the advancement of the information technology sector. The primary focus of this study is centered on the critical analysis of the tax agent institute, whose functioning within the aforementioned special legal regime is characterized by a series of substantial theoretical and practical contradictions that necessitate rigorous scholarly reflection. The fundamental objective of this research is to conduct a multidimensional analysis of the specificities surrounding the performance of tax agent duties by a Diia City resident during the taxation of specialists' income, to identify legal collisions arising when a subject loses the respective status, and to formulate scientifically grounded recommendations for the refinement of tax legislation to ensure strict adherence to the principle of legal certainty. To achieve this defined objective, the following tasks were addressed: exploring the legal nature of a Diia City resident as a subject of tax legal relations; analyzing the procedural and temporal dimensions of challenging the decisions of the authorized body through both judicial and administrative appeal procedures; evaluating potential financial risks for business entities; and justifying the necessity of legislative amendments. The methodological framework of this investigation is composed of general scientific and specialized methods of cognition, with a primary emphasis on the dialectical approach, formal-legal analysis, and the method of systematic investigation of legal norms, which collectively enabled an objective assessment of the current state of regulatory oversight and the identification of systemic gaps within the effective legislation of Ukraine.

Summary of the main research results. As a result of the systematic analysis, it has been established that a Diia City resident is endowed with a highly specific legal status as a tax agent regarding the income disbursed to specialists. The scientific novelty of this work lies in the conceptualization and substantiation of the phenomenon of the deformation of the tax agent's legal status, which emerges due to the introduction of atypical obligatory constructs within the Tax Code of Ukraine. It is demonstrated that the legislative requirement mandating a resident to independently calculate and remit personal income tax at a rate of eighteen percent using its own funds in the event of loss of status following a judicial appeal is fundamentally inconsistent with the core tenets of tax law doctrine. According to the universally recognized principles of legal science, a tax agent must function exclusively as an intermediary, fulfilling tax obligations at the expense of the taxpayer’s funds rather than at the expense of the agent's own assets. Furthermore, it was found that the absence of a clearly regulated procedure for performing a tax recalculation at the eighteen percent rate for the duration during which the Diia City resident actually applied the preferential rate of five percent during the judicial appeal process creates significant risks of double taxation regarding specialists' income. Additionally, the study identifies a lack of coordination between the legal consequences of different appeal procedures, which constitutes a direct violation of the principle of equality of taxpayers. The practical significance of the findings lies in the identification of specific normative collisions within sub-item 170.14-1.4 of item 170.14-1 of article 170 of the Tax Code of Ukraine and the development of applied proposals for their elimination. The theoretical value of the study is driven by the further development of scientific approaches toward defining the boundaries of legal liability and the scope of obligations for tax agents within special legal regimes.

Conclusions. Based on the results of the research, it is concluded that the current version of tax legislation governing the activities of Diia City residents requires immediate adjustment to bring it into full compliance with the principles of legal certainty and the equality of all taxpayers before the law. The findings indicate a significant deviation from the principle of taxpayer equality regarding Diia City residents who challenge decisions on the loss of status through judicial procedures compared to those subjects who opt for the administrative appeal procedure. It is proven that the removal of the provision requiring the payment of tax at the tax agent's own expense is a vital step toward ensuring the stability of the investment environment and protecting the legitimate rights of the participants within the digital economy of Ukraine.