Mikhail Titarchuk: STS and taxpayers seek to have a perfect legal framework

Statistics of lawsuits initiated in the tax segment shows the imperfection of tax legislation in terms of administrative mechanisms. Therefore, the State Tax Service pays great attention to methodological work, formation of suggestions for changes in tax legislation which would be acceptable to taxpayers and which would allow the transparent administration of taxes, fees and charges. This was stated by Deputy Chairman of the State Tax Service of Ukraine Mikhail Titarchuk in an interview with “LIGA.NET BLOGS”.

According to him, more than 84 thousand cases totaling 313.2 billion UAH have been in courts of various instances since the beginning of 2020.

State Tax Service of Ukraine is a plaintiff in 16.7 thousand cases.

“According to the results of disputes consideration with participation of the State Tax Service, it can be stated that about 51% of the number and amount of cases considered by the courts are resolved in favor of tax authorities. Cases totaling 23 billion UAH have been resolved in favor of the STS” – stated Mikhail Titarchuk.

He emphasized that the largest share among the initiative court cases belongs to the tax debt collection cases. A much smaller number of cases are cases of declaring debtors as bankrupts.

Budget’s receipt of funds by court decisions has amounted almost 1 billion UAH over 6 months of 2020. This is 68% more than over the same period in 2019.

Deputy Chairman of the STS also noted that currently there is a significant share of cases concerning the renewal of the taxpayer’s tax limit in the VAT SEA for the amount for which the taxpayer can register tax invoices / adjustment calculations in the Unified Register of Tax Invoices. Currently, 107 such disputes totaling almost 2 billion UAH are pending in courts of various instances.

Given this, the Supreme Court of Ukraine has formed a legal position according to which the adjustment of registration limit of monetary obligations in the system of electronic administration is carried out using a special formula, which is not subject to adjustment manually. This position is crucial for the formation of further case law of this category.

“I assure that the State Tax Service and taxpayers seek to have a perfect legal framework that eliminates any possibility of ambiguous interpretation of rules and provisions of tax legislation. The result will be a significant reduction in appeals to the courts” – emphasized Mikhail Titarchuk.