Author: Aliona Yevtushenko, lawyer at F&P
Receiving a notification in your personal account of the Register of Declarations that your declaration has been selected for a full audit is a stressful moment, to put it mildly. Especially if you are not very sure that you have declared everything correctly. But panic is the worst advisor. A full audit is a procedure with clear rules, deadlines, and boundaries. And knowing these rules is your main defense tool.
On the NACP’s website, we have already written about what the NACP pays attention to during full inspections. This article is about something else: what you, as a declarant, should do if the audit has already begun or you are assessing the risk of it starting.
How the NACP selects declarations for verification
Since 2024, the NACP has been working on a risk-based approach. This means that it does not check everyone, but only those with discrepancies identified by the system. The NACP has access to dozens of state registers: real estate, vehicles, bank accounts, legal entities, and court decisions. The system automatically compares data from the declaration with these registers. If there is a discrepancy, the declaration is put on the “attention zone”.
In addition to the automatic analysis, the basis for the inspection may be a report from a whistleblower, a journalistic investigation, or information from law enforcement agencies. But in any case, the inspection has a formal basis and procedure.
Verification procedure: step by step
Message. The next day after the start of the audit, the NACP notifies the declarant in their personal account. From that moment on, you officially know that you are being audited.
Request for documents. The NACP has the right to request copies of documents confirming the accuracy of the information in the declaration. This may apply to any section: property, income, accounts, corporate rights. You are obliged to provide these documents. Refusal is not the best strategy.
Timeline. A full audit is conducted within 120 days from the date of its commencement. This period may be extended for another 60 days, but not more.
Result. Based on the results of the audit, the NACP draws up a conclusion. If inaccurate information is found in the amount of more than 100 PM, the materials are sent to law enforcement agencies (NABU, police, prosecutor’s office – depending on the subject). If there are signs of unjustified enrichment or a discrepancy between the standard of living and the declared income, this may be grounds for civil forfeiture.
Strategy of behavior during the audit
The first rule is to cooperate, but in a deliberate way. It is your responsibility to provide documents. But you need to provide them carefully. Each document you submit should confirm your position, not create new questions. Before responding to the NACP’s request, analyze what exactly is being requested, what documents you have, and whether they have any discrepancies with the declaration.
The second rule: do not wait for a request – submit an explanation first. If you know that there is an inaccuracy in the declaration (for example, you noticed an error after submitting it), submit an explanation in the e-cabinet before the NACP asks for it. The verification procedure directly stipulates that explanations submitted before the start of the verification should be taken into account.
Third rule: distinguish between inaccuracy and unreliability. This is a key distinction. Inaccuracy (up to 100 PM) is a disciplinary action. Inaccuracy (more than 100 PM) is administrative or criminal liability. Your task is to substantiate as much as possible that any discrepancy is an inaccuracy: a technical error, rounding, use of a different exchange rate, and not a deliberate concealment.
The fourth rule: involve a lawyer in responding to the request. This is not a matter of prestige. The response to the NACP’s request is essentially your testimony, which can then be used in administrative or criminal proceedings. Incorrect wording can turn inaccuracy into unreliability. A lawyer will help you structure the answer correctly and avoid self-incrimination.
What does the NACP check specifically
Based on the analysis of inspection practice, the main areas are as follows:
- Real estate: whether everything is declared, whether the area and value correspond
- Vehicles: the presence of undeclared cars (especially those registered in the name of family members)
- Bank accounts and balances: comparison with NBU data
- Income: whether the declared income corresponds to the information from the tax authorities
- Corporate rights: participation in LLCs, shares, stocks
- Expenses: whether the declared expenses exceed the declared income (signs of unjustified enrichment)
- Property and accounts abroad
Separately: the risk of civil forfeiture
This is a relatively new tool that the NACP is increasingly using. If the audit finds that the declarant has assets that are not supported by legitimate income, the NACP may initiate a procedure to recognize the assets as unjustified and recover them for the state. This is a separate legal process, but it is directly related to the full verification of the declaration.
This risk concerns not only top officials. In 2025-2026, the NACP filed several lawsuits against mid-level officials. Therefore, it should not be underestimated.
When to contact a lawyer
Ideally, before filing your tax return if you have a complex asset structure, foreign elements, or doubts about the definition of family members. Realistic – immediately after receiving a notification of the start of the audit. Absolutely necessary – before responding to the NACP’s first request.
Our firm has experience in supporting declarants during full NACP inspections, preparing explanations and defending them in administrative and criminal proceedings related to declarations. If you have any questions about filling out the declaration or have already received a notice of inspection, please contact us. The earlier, the more opportunities for defense.
Need help with declaration or protection during NACP inspection? Don’t hesitate to contact us.
Phone: +38 093 722 56 33
Email: fo@fedoryshyn.com
