Cassation Court confirmed legality of issued tax notifications-decisions for 109.69 million UAH

Press service of the State Tax Service of Ukraine, published 16 April 2021 at 12:56 Chapter: News

Administrative Cassation Court within the Supreme Court upheld position of Main Directorate of the State Tax Service of Kyiv city and detected that economic operations between the State Enterprise “Ukrtransnaftoprodukt” and a number of its contractors were not real, as any documents confirming the delivery of goods were submitted for inspection. Certificates of conformity, quality and origin of products were not provided, as well as primary documents confirming the storage of products, documents confirming transportation (consignment notes, waybills), power of attorney to receive the products and bank statements that would confirm reality of the purchase of goods.

The court pointed out that the above-mentioned circumstances established by the controlling bodies are a legitimate and sufficient ground for additional accrual of VAT liabilities to the taxpayer-plaintiff.

In addition, the Court took into account that during the investigation of criminal proceedings it was established that oil products were imported to the territory of Ukraine under the pretext of their further transit, which were actually sold within the state without paying proper payment of taxes and other collecting payments during 2013-2014.

Therefore, the court agreed with conclusion of the controlling body that the excise tax was not calculated and, accordingly, excise tax was not paid as a result of the sale of oil products by the SE “Ukrtransnaftoprodukt”.

Herewith, the court stated that since the taxpayer sold petroleum products, he had to pay environmental tax and submit relevant declaration.

Panel of judges of the cassation instance considered discrepancies in the primary documents submitted for verification, lack of mandatory details, as well as the fact that relevant primary documents were not submitted for verification in full.

Decision of the Administrative Cassation Court of the Supreme Court as of 16.02.2021 in case № 826/4550/16 left the SE “Ukrtransnaftoprodukt” cassation appeal unsatisfied and appealed decisions of the courts of first and appellate instances – without changes.

As follows, the Cassation Court confirmed legality of tax notifications-decisions issued by the controlling body for the total amount of 109.69 million UAH.

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