Court upheld position of the State Tax Service regarding inclusion of enterprise in the audit schedule

Court of Appeal upheld position of the State Tax Service regarding compliance of the risk criteria with the Representative Office of “Wilhelmsen Ships Service AC”.

A number of risks were identified, which enabled the tax authority to include enterprise in schedule of documentary scheduled audits for 2020. Taxpayer, disagreeing with inclusion of enterprise in the schedule of documentary scheduled audits, appealed against such actions of the tax authority to the court.

Court of Appeal by its decision as of 20.01.2021 in case № 420/5763/20 emphasized that actions of the controlling body on the formation, including approval, of schedule of documentary scheduled audits of business entities are only official activities of employees of the tax authority, and therefore, they do not create any legal consequences for taxpayer in the form of change or termination of his rights and do not give rise to binding legal consequences for him and, accordingly, such act does not violate rights of the latter.

Decision of Odessa District Administrative Court as of 29.10.2020 was revoked and a new decision was made, which in satisfaction of claim of the Representative Office of “Wilhelmsen Ships Service AC” to the State Tax Service of Ukraine and Main Directorate of the State Tax Service in Odessa region, to recognize illegal actions and the obligation to take certain actions was denied in full.

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