The Constitutional Court of Ukraine started to consider the case on the constitutionality specific provisions of the Law of Ukraine «On collection and account of single contribution for general mandatory state social insurance»
June 4, the Grand Chamber of the Constitutional Court of Ukraine in the public part of the plenary sitting in written proceedings considered the case upon the constitutional petition of the Parliamentary Human Rights Commissioner regarding the conformity of the provisions of clause 2 Article 7.1 of the Law of Ukraine «On collection and account of single contribution for general mandatory state social insurance» of July 8, 2010 No. 2464–VI as amended (hereinafter – the Law) to the Constitution of Ukraine (constitutionality).
At the plenary sitting the judge-rapporteur in the case Ihor Slidenko noted that Article 7 of the Law determines the basis for calculation of the single contribution for general mandatory state social insurance (hereinafter – single contribution).
The disputed provisions of the Law establish that the single contribution is calculated «for payers, specified in clauses 4 (except for natural persons-entrepreneurs, who opted for a simplified system of taxation), 5 and 5-1 of Article 4.1 of this Law, – for the sum of income, obtained as a result of their activity, which is to be taxed against the income of natural persons. The sum of the single contribution may not be less than the amount of minimum insurance contribution per month.
In case such payer did not obtain income in a reporting quarter or in specific month of a reporting quarter, such payer is obliged to determine a basis for calculation, but not more than the maximum scale of the basis for calculation of the single contribution, established by this Law. The sum of the single contribution may not be less than the amount of the minimum insurance contribution».
The author of the petition notes that the disputed provisions of the Law in the part of obligation to determine the basis for calculation of the single contribution, who did not obtain income in a reporting quarter, «violated the right to private property and the right to engage in entrepreneurial activity».
The Parliamentary Human Rights Commissioner considers that the disputed provisions of the Law do not comply with a number of articles of the Constitution of Ukraine.
The judge-rapporteur also informed that the opinion of the Legal Department of the Secretariat of the Constitutional Court of Ukraine, information of the Chairman of the Verkhovna Rada of Ukraine, research and legal expertise of the Institute of Economic and Legal Research of the National Academy of Sciences of Ukraine, research and legal opinion of Taras Shevchenko National University of Kyiv, the reply to the inquiry of the State Tax Service of Ukraine were attached to the case-files.
Having heard the information of the judge-rapporteur regarding the content of the constitutional petition and the grounds to initiate the constitutional proceedings in the case, the Court went over to the closed part of the plenary sitting.
The plenary sitting was chaired by the Chairman of the Constitutional Court of Ukraine Oleksandr Tupytskyi.
The plenary sitting was attended by a participant of the constitutional proceedings –a representative of the subject of the right to constitutional petition, representative of the Commissioner for Observance of the Right to Information and Representation at the Constitutional Court of Viktor Barvytskyi.
Videorecording of the public part of the plenary sittings of the Court can be found at the following link: http://ccu.gov.ua/kategoriya/2020.
