Court determined legality of determining payer's monetary liability due to the lack of confirmed business operations

Cassation court supported position of the controlling body regarding increase of the plaintiff's monetary income tax liability for conducting business operations in the whole or retail sale of meat and meat products, as absence of such business operations was established.  

Audit conducted by the controlling body established absence of written contracts for supply of products between the plaintiff and individuals, as well as absence of accompanying documents for products supply.

Taking into account above specified, the Panel of judges of the Cassation administrative court noted that the plaintiff did not provide initial and settlement/payment documents that confirm conduction of economic operations in the whole or retail sale of meat and meat products, therefore it is a legitimate conclusion that these economic operations were not carried out.

Taking this into account, the Supreme Court as a part of panel of judges of the Cassation administrative court considers that decision of the controlling body to determine the claimant's monetary income tax liability is legitimate, which indicates that there are no grounds for satisfying the claim.

In such circumstances, decision of the Supreme court as a part of panel of judges of the Cassation administrative court as of 11.01.2024 in case № 500/4025/21 dismissed the taxpayer’s cassation appeal and left unchanged decision of the Ternopil district administrative court as of 24.01.2022 and decision of the Eighth administrative court of appeal as of 01.06.2022.