Court supported position of tax authorities on invalidating contracts for the agricultural crops supply

Cassation court supported the controlling body’s position on invalidating contracts for the agricultural crops supply concluded between the first and second defendants and application of consequences of the invalidity of operations.

To the conviction of panel of judges of the cassation instance, conclusions of courts of previous instances are premature regarding the fact that controlling body did not provide proper and admissible evidence to substantiate presence of the defendants' intention to enter into supply contracts for non-payment of taxes, which are known to be contrary to interests of the state and society, and such evidence is subject to additional research.

In particular, in ruling of the Cassation Administrative Court as a part of panel of judges of the Supreme Court as of 13.09.2023 in case № 580/5634/22, it is emphasized obligation to establish circumstances related to the propriety, admissibility and reliability of evidence, as well as to provide assessment of the case circumstances in aspect of concluding contracts with a purpose that is known to be contrary to interests of the state and society; presence of the defendants' intention.

Therefore, the Cassation Administrative Court as a part of panel of judges of the Supreme Court on 13.09.2023 in case № 580/5634/22 supported cassation appeal of tax authority; decision of the Cherkasy District Administrative Court as of 24.01.2023 and decision of the Sixth Administrative Court of Appeal as of 11.05.2023 were annulled; case was remanded to the court of the first instance.