Court upheld position of the State Tax Service regarding debt collection in the amount of almost 1.2 billion UAH

Kyiv District Administrative Court upheld position of Main Directorate of the State Tax Service in Kyiv city in case № 640/3589/20 regarding debt collection in the amount of almost 1.2 billion UAH.

Court came to the conclusion that the stated amount was agreed upon and is the defendant's tax debt to the budget, which he has not paid and is subject to collection from bank accounts serving specified taxpayer.

At the same time, the Court established that the defendant is a non-banking financial institution that carries out activities related to the transfer of funds in national currency without opening accounts.

As follows, funds on the defendant's accounts cannot be considered as a contribution or deposit, since the latter is not a banking institution.

In view of the above specified, the Court does not see existence of a ban on the use of funds held on the defendant's accounts as a source of repayment of the taxpayer's tax debt.

Kyiv District Administrative Court made a decision dated 17.05.2022 in case 640/3589/20 to fully satisfy claims of Main Directorate of the State Tax Service in Kyiv city regarding the debt collection.