Almost 70 million UAH of additionally accrued taxes was paid to the budget by agricultural enterprise according to the audit results

Understatement of the income and value added tax liabilities were detected by specialists of the State Tax Service during a scheduled documentary audit of one of the leading enterprises of the agro-industrial complex and grain elevator service.

For violation, the Tax Service additionally accrued 69.8 million UAH to the enterprises, which it subsequently paid in full to the state budget.

In particular, understatement of income tax arose due to overstatement of expenses, which included:

- allocation to other operating expenses of the following amounts:

- VAT on tax invoices, registration of which was suspended, as well as VAT on products and services not related to economic activity;

- related to creation of the VAT reserves, in connection with the court appeals and which are not confirmed by primary documents;

- failure to reflect in the reporting amounts of fines, penalties and reserves for doubtful debts according to requirements of accounting standards.

In addition, the VAT understatement was established due to overstatement of tax credit for transactions with a risky counterparty, which only documented transactions without actually carrying them out, as well as due to incorrect completion of tax reporting.

Risk-based approach, detailed analysis of primary and financial documentation, and use of analytical databases of the State Tax Service allowed for the prompt identification and documentation of violations.

Due to a constructive dialogue between the State Tax Service and enterprise, the payer acknowledged identified violations and paid additional amounts to the budget in full within time period established by the law.

It is worth emphasizing that the State Tax Service carries out tax control taking into account decision of the National Security and Defense Council to introduce legal and organizational measures regarding a moratorium on groundless audits and interference by the state bodies in business activities, and exclusively on the basis of a risk-oriented approach and in the presence of high levels of risk.