Court confirmed legality of issued tax notifications-decisions for 37.72 million UAH

Court upheld position of the Central interregional directorate of the STS for work with large taxpayers regarding issued tax notifications-decisions for a total amount of 37.72 million UAH.

The Sixth Administrative Court of Appeal upheld position of the Central interregional directorate of the STS for work with large taxpayers and concluded that submission of application by the State Enterprise “National Atomic Energy Generating Company Energoatom” for installment of payment, as well as untimely consideration of such application by the supervisory authority does not release the taxpayer from liability according to Paragraph 126.1 Article 126 of the Tax Code of Ukraine.

In addition, the Court of Appeal noted that conditions for the non-application of a fine provided for in Article 126 of the Tax Code of Ukraine are only the decision and conclusion of the relevant agreement on installment (deferral) of monetary obligations (tax debt) for the period before the expiration of agreement on installment (deferral) of monetary obligations (tax debt) and this may apply only to deferred monetary obligations (tax debt) which are paid according to the contract. Out of the scope of contract, in case of the non-payment of monetary obligations (tax debt), the liability provided for in Article 126 of the Tax Code of Ukraine is applicable.

The Sixth Administrative Court of Appeal made a Decision as of 17.06.2021 in the case № 640/33751/20 to dismiss the taxpayer’s appeal and Decision of the first instance on the refusal to satisfy claims for the recognition of tax notifications-decisions as illegal and its cancellation to leave without changes.

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