Court supported position of the State Tax Service regarding amount determination of monetary obligation from the VAT and corporate income tax

Cassation court supported position of the controlling body regarding amount determination of monetary obligation from the value added tax and corporate income tax.

Panel of judges formulated the following legal conclusion: monetary obligations are payable within ten days from the date of their agreement and not upon receipt of a new tax notification-decision, which, based on the results of court appeal, actually fixes amount of the agreed monetary obligation, legality of which has been confirmed by the court. While norms of the Tax Code of Ukraine provide for sending of new tax notification-decision in case of a judicial reduction of amount of monetary obligation, however, it has a different legal meaning and consequences. In particular, such decision is not subject to procedure for agreeing monetary obligation and/or right to re-appeal it.  

Cassation court emphasized that the payer's argumentations regarding illegality of disputed tax notifications-decisions, indicated by him in the statement of claim, in the appeal and cassation appeals, do not refute well-founded conclusions of the courts of first and appellate instances that there are no grounds for satisfying the claims and, first of all, relate to the payer's attempt to reassess circumstances, which have already been given legal assessment during the initial legal appeal of monetary obligation determined by the controlling body, part of which is accrued by the contested tax notifications-decisions for execution of the court decision, by which such monetary obligation is recognized as justified and legal in the essence of legal relationship. Disputed tax notifications -decisions were adopted as a result of the court appeal of previous (revoked) tax notifications -decisions, which is the final stage of procedure for appealing such decisions, established by the Tax Code of Ukraine, and cannot be considered separately in isolation from the entire appeal procedure.

Therefore, the Cassation administrative court as a part of panel of judges of the Supreme Court on 31.10.2023 in case № 826/9086/17 dismissed the taxpayer’s cassation appeal; decision of the District administrative court of Kyiv city as of 28.09.2022 and decision of the Sixth appeal administrative court as of 22.02.2023 were left unchanged.