Supreme Court confirmed legality of issued tax notifications-decisions for 267.58 million UAHChapter: News
Administrative Cassation Court within the Supreme Court upheld position of Main Directorate of the STS in Kyiv city that it is the business entity’s duty to confirm legality, validity and completeness of the formation of accounting and tax accounting data by the appropriate documents of the primary financial and accounting reporting.
In addition, it is noted that the loss of relevant documents is not an unconditional reason for postponing the audit. Obligatory reason for postponing the audit term, according to Paragraph 44.5 Article 44 of the Tax Code of Ukraine, is the audit’s impossibility due to the absence of documents that are lost by the taxpayer.
The Supreme Court paid attention to the fact that the Subsidiary company “Krai Properti” was not deprived of the opportunity to exercise its right to submit the lost documents in a certain manner and to prove that data specified in such documents affected the substance of circumstances identified during the audit and that the absence of such documents did not allow to conduct appropriate control measures.
Herewith, the Cassation Court pointed out that the most important is the conclusion on the property value for determining the tax base, which indicates the specific value of a particular property, the transfer of ownership of which within this case is the object for value added tax.
Therefore, the Administrative Cassation Court within the Supreme Court made a decision as of 13.05.2021 in the case № 640/15297/19 to dismiss cassation appeal of the Subsidiary company “Krai Properti” and to leave without changes decision of the Appellate court to refuse to satisfy claims for the illegality and cancellation tax notifications-decisions.
As follows, the Supreme Court confirmed legality of issued by Main Directorate of the STS in Kyiv city tax notifications-decisions for 267.58 million UAH.
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