Court confirmed legality of adopted tax notifications-decisions

Cassation court supported the controlling authority’s position regarding legality of adopted tax notifications-decisions, which increased amount of the plaintiff’s monetary obligation and applied punitive (financial sanctions) for the "fuel" payment.

Audit has reasonably established that volumes of sold fuel exceed volumes calculated according to Paragraph 232.3 Article 232 of the Tax Code of Ukraine, without registering relevant applications for replenishment of the remaining fuel volume in the Electronic administration system of fuel sales. As of the date of audit report, the payer did not exercise right to register adjustments to applications for replenishment of the remaining fuel within 365 days.

Courts established that no documents that would confirm the plaintiff’s argumentations regarding essence of the identified violations and refute conclusions of the tax authority were provided by the plaintiff either to the audit, to the court, or to the expert for examination. Just as documents were not provided during the case retrial to fulfill requirements of the Supreme Court specified in Ruling as of 08.11.2021, which referred this case for retrial.    

Upon numerous requests for provision of documents handed to the plaintiff during audit, the latter provided only some of them at the first request of the controlling authority, while the plaintiff did not provide other documents, was informed of the opportunity to familiarize himself with them, however, access to all documents, including electronic data, was never provided to the defendant’s officials.

Therefore, the Cassation administrative court as a part of the Supreme Court on 16.12.2024 in case № 640/21601/19 granted cassation appeal of Main Directorate of the State Tax Service in Kyiv city, as a separate subdivision of the State Tax Service. Decision of the District administrative court of Kyiv city as of 08.06.2022 and Ruling of the Sixth administrative court of appeal as of 26.04.2023 were canceled. New decision was adopted, which denied the plaintiff’s claims to declare tax notifications-decisions as illegal and cancel them.