Court upheld position of tax authorities regarding the additional accrual of 12.56 million UAH to the company

Court confirmed legitimacy of tax notification-decisions for 12.56 million UAH issued by Main Directorate of the STS in Kyiv city.

Panel of judges of the Sixth Administrative Court of Appeal upheld position of Main Directorate of the STS in Kyiv city and concluded that in the absence of purchase of products or services or if purchased products or services are not intended for use in the taxpayer’s economic activity, relevant amounts may not be included in tax credit, even in the formal presence of documents or cash.

Primary documents, drawn up in the case of actual implementation of business operation and provided that they meet requirements of Article 9 of the Law of Ukraine “On accounting and financial reporting in Ukraine”, can be taken into account to confirm tax accounting data.

Sixth Administrative Court of Appeal is critical towards documents provided as evidence of reality of business operation regarding obtainment of products and their internal movement, as there is no evidence in the case that would confirm actual receipt of products from suppliers, in particular, evidence of transportation.

Panel of judges summarized that documents provided by the State Enterprise “National Atomic Energy Generating Company “Energoatom” are not sufficient to confirm actual implementation of business operations, which refutes relevant payer’s references to the latter as a basis for satisfaction of claims.

As follows, Sixth Administrative Court of Appeal made a Decision to dismiss appeal of the State Enterprise “National Atomic Energy Generating Company “Energoatom” and to leave unchanged Decision of the court of first instance on the refusal to satisfy claims for recognition of notification-decisions as illegal and their cancellation.

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