Even as the horror and desolation of war emerges between Ukraine and Russia, at least some good news has emerged for Ukrainian taxpayers.
Two Ukraine farmers appeared on a recent twitter. They were seen using a tractor to tow away a Russian tank found in a rural area. The farmers had concluded the tank to be abandoned as no Russian soldiers were seen in the area. (Source: JohnnyMercerUK, Twitter)
The video featured on the Internet. The Ukraine government soon announced tax on seized Russian tanks would be waived. This is consistent with the country’s “Manifestation of the Unity and Cohesion” of the country and society. (Source: https://en.interfax.com.ua)
Under Australia’s tax system, capital gain normally arises with the sale of an asset. However, this tax is not applied in the Ukraine. On the other hand, Ukrainian investment income is normally taxed at 18% on top of the 1.5% military tax. The waiver will remove this tax.
The tank towed away in the video is recognised as an Armoured Personnel Carrier (APC). A new APC’s current market value could be from $70,000 to $100,000 (AUD 96,000- AUD 137,000). (Source: https://tanks-alot.co.uk)
Ukrainian officials estimate that 108 Russian tanks have been destroyed and abandoned by Russian troops. Of these, 50 tanks are now in the hands of the Ukraine. (Source: https://www.theguardian.com) The value of the APC’s and the tax waiver has potential to provide a significant tax benefit.
Other equipment that could be used in the fight against Russian troops has also been afforded the tax waiver.