Court upheld position of the State Tax Service on the legality of charging enterprise with monetary obligation

Tax authority, during the audit, determined amount of monetary obligation to the State Enterprise “Ukrtransnaftoproduct”, namely of the excise tax, value added tax and income tax in the total amount of 109 million UAH. Disagreeing, the taxpayer appealed decision of tax authority in the court.

Court of first and appellate instance upheld position of the State Tax Service. Administrative Court of Cassation of the Supreme Court in its decision № 826/4550/16 as of 16.02.2021 emphasized that the tax authority rightly concluded that funds from the sale of seized petroleum products to the plaintiff’s profit and that the ownership of petroleum products to the plaintiff did not pass, the latter only carried out their enforcement by the court order. That is why funds received from the sale of seized petroleum products are not the plaintiff’s profit and should be transferred in full to account of the Main Directorate of the National Police in Odessa region. 

The cassation appeal of the State Enterprise “Ukrtransnaftoprodukt” was dismissed and decision of the District Administrative Court of Kyiv city as of 23.02.2017 and decision of Kyiv Administrative Court of Appeal as of 26.06.2017 remained unchanged.

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