Court supported position of the controlling body regarding legality of decision regarding the payer’s possibility to fulfil tax obligation

Cassation court supported position of the controlling body regarding legality of decision regarding the payer’s possibility of timely fulfillment of his tax obligation. 

Ruling of the Cassation administrative court as a part of panel of judges of the Supreme Court as of 04.10.2023 in case № 160/19575/22 supported conclusions of the courts of previous instances that the plaintiff, applying to the controlling body with a statement about the inability to fulfill tax obligations, had to confirm the impossibility of timely fulfillment of tax obligation with documents specified in the "List of documents confirming the impossibility of the taxpayer – legal entity, in particular, with regard to its branch, representative office, separate or other structural subdivision, to timely fulfill tax obligations, including obligation of tax agent", which was approved by Order of the Ministry of Finance of Ukraine № 225 as of 29.07.2022 and which would not cause any doubts or remarks. 

The Supreme Court noted that the loss act (destruction or deterioration) of computer and other equipment as a result of hostilities did not specify what "computer equipment" and what "financial and economic documentation" were destroyed; the plaintiff did not provide evidence to confirm that the "computer equipment" and "financial and economic documentation" destroyed by the airstrike were used by him in economic activity, contained relevant information necessary for submitting reports for current periods of economic activity, etc. 

Cassation court certified that documents provided by the plaintiff did not establish the loss (destruction or deterioration) of primary documents, computer and other equipment as a result of hostilities, acts of terrorism, sabotage caused by the military aggression of russian federation, as a result of which the company cannot fulfill its obligations regarding timely submission of tax reporting, payment of taxes, fulfillment of other tax obligations; any documents were provided to confirm absence of funds in bank accounts.

Taking into account above specified, the Supreme Court came to conclusion that making disputed decision, the tax authority acted on the basis and in manner provided by current legislation of Ukraine, therefore there are no legal grounds for satisfying claims.

Therefore, the Cassation administrative court as a part of panel of judges of the Supreme Court on 04.10.2023 in case № 160/19575/22 dismissed the taxpayer’s cassation appeal; decision of the Dnipropetrovsk district administrative court as of 21.04.2023 and decision of the Third administrative court of appeal as of 06.07.2023 were left unchanged.