Company will pay 50.69 million UAH for violating tax legislation

Court confirmed the legitimacy of tax notification-decision for 50.69 million UAH issued by Western Interregional Directorate of the STS for work with large taxpayers.

Panel of judges of the Eighth Administrative Court of Appeal supported position of the Western Interregional Directorate of the STS for work with large taxpayers and concluded that appeal against the Order of tax authority on unscheduled documentary on-site audit does not provide the company with proper protection of its rights, as the legal consequences which have arisen as a result of carrying out such audit and decisions accepted as a result of it keep force and do not lose their effect automatically.

At the same time, the Court of Appeal emphasized that the payer’s statement of claim does not contain any argumentations on the merits of violations of tax legislation established by the controlling body, in particular in terms of proving the reality of business operations. Payer did not provide primary documents that would contain information on business operations, so there is no confirmation of the actual receipt of inventory and their connection with business activities of the LLC “Corporation KRT” and therefore the payer did not prove their use in their own business activity, in this regard, there are no grounds for their inclusion in the tax credit.

As follows, the Eighth Administrative Court of Appeal made a Decision to satisfy appeal of the Western Interregional Directorate of the STS for work with large taxpayers and dismissed Decision of the Court of first instance on satisfaction of the payer’s claim. The Court also adopted new Decision which denied claims of the LLC “Corporation KRT” on the recognition of tax notification-decision illegal and its cancellation.

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