Court confirmed legality of tax notification-decision in the amount of fines totaling 1.8 million UAH

Cassation court upheld position of the controlling body regarding the taxpayer's violation of the payment term of rent monetary obligations for 1 calendar day.

In particular, ruling of the Cassation administrative court as a member of panel of judges of the Supreme Court dated 03.07.2023 in case No. 826/6820/18 emphasized that formation by the plaintiff of payment order No. 1440 was on May 30, 2016 at 4:41 p.m., that is, within working hours of bank serving the plaintiff, indicating all necessary requisites, but without signature of authorized persons, it is insufficient to conclude that money transfers were initiated.

Court noted that it was after the bank received signed payment order, which took place on May 30, 2016 at 5:59 p.m., i.e. after working hours that the bank became obligated to make the corresponding payment. This obligation was fulfilled the next day, which meets requirements of Article 8 of the Law No. 2346-III and Paragraph 2.19 of Instruction No. 22.

Since proper execution of the payment order (its signature by authorized persons) depended solely on the plaintiff’s will, there are no grounds to believe that the late payment of agreed tax liability was not the plaintiff’s fault, but the bank’s fault, and therefore conclusion of the court of first instance that the plaintiff fulfilled his obligation in a timely manner is erroneous.

Court of cassation instance summarized that initiation of money transfer begins after sending the bank properly executed payment document with mandatory binding with signatures of authorized persons. Accordingly, only after receipt of properly executed payment document, the bank has obligation to execute it.

Therefore, by ruling of the Cassation administrative court as a part of panel of judges of the Supreme Court dated 03.07.2023 in case No. 826/6820/18, cassation appeal of Main Directorate of the State Tax Service in Poltava region was satisfied; decision of the District administrative court of Kyiv city dated 24.04.2020 and decision of the Sixth administrative court of appeal dated 22.11.2022 were canceled. New decision was adopted, in which the plaintiff's claim to Main Directorate of the State Fiscal Service in Poltava region, Main Directorate of the State Tax Service in Poltava region to declare illegal and cancel tax notification-decision No. 0008241213 dated 15.02.2018 in the amount of fines totaling 1.8 million UAH was completely rejected.