Court supported position of tax authorities regarding validity of grounds for reviewing court decision

Cassation court supported the controlling body's position on the validity of grounds for revising court decision based on the newly discovered circumstances, given that the plaintiff’s business operations, as a result of which the taxpayer formed tax credit and payments, are not of a real nature.

Supreme Court gave a positive assessment to argumentations of tax authority that presence of decision of the Babushkinskyi District Court of Dnipropetrovsk city as of 17.10.21`2022 in case № 932/5772/22 regarding PERSON 1 under the Fifth part of Article 27 Part 2 of Article 205-1 of the Criminal Code of Ukraine, is a sufficient basis for satisfaction of application for the review under newly discovered circumstances of court decision. According to this court decision, actions of the the PERSON 1, which was expressed in assisting in falsification of documents that, according the to the law, are submitted for the state registration of legal entity of the taxpayer's counterparty, namely, in assisting in the introduction of knowingly false information into the specified documents by providing unidentified persons with copies of their own passport, identification code and other personal data, necessary for their production and subsequent implementation on the basis of the specified documents of state registration of changes to the information about the legal entity of counterparty in the Unified State Register of Legal Entities, committed by a group of persons in a prior conspiracy, violated the norms of legislative acts of Ukraine, which regulate activities of business entities and the taxation procedure.

Cassation court testified that in order to resolve application of tax authority to review the court decision based on newly discovered circumstances, the courts of previous instances had to provide assessment of decision of the Babushkinskyi District Court of Dnipropetrovskiy in case № 932/5772/22 as of 17.10.2022 establishes the falsity of written, physical or electronic evidence, which are basis of the cassation of Volyn District Administrative Court as of 22.10.2019.

Cassation Administrative Court as a part of panel of judges of the Supreme Court on 16.11.2023 in case №140/2341/19 supported cassation appeal of Main Directorate of the State Tax Service in Volyn region. Decision of Volyn District Administrative Court as of 29.06.2023 and decision of the Eighth Administrative Court of Appeal as of 29.08.2023 on the refusal to grant application for review under newly discovered circumstances of the court decision have been annulled. Case №140/2341/19 was sent to the Volyn District Administrative Court for a new review in part of consideration of application of Main Directorate of the State Tax Service in Volyn region to review decision of the Volyn District Administrative Court dated October 22, 2019 based on newly discovered circumstances.