Tax officials proved in court legitimacy of additional accrual of 120.3 million UAH to the company for violation of tax legislation

Press service of the State Tax Service of Ukraine, published 17 December 2021 at 09:43 Chapter: News

Court confirmed legitimacy of tax notifications-decisions for the total amount of 120.3 million UAH issued by Eastern Interregional Directorate of the STS for work with large taxpayers.

Panel of judges of the Third Administrative Court of Appeal supported position of Eastern Interregional Directorate of the STS for work with large taxpayers and concluded that the taxpayer’s reference to the fact that presence of duly registered invoices for purchased products (fuel) is a sufficient condition for the tax credit formation by the LLC “August Prom”. Subject of audit and subject of dispute in this case are not only validity of the taxpayer’s credit but also his proof of reality of the business transaction with counterparty on the basis of certain documents.

Court of Appeal paid attention to the fact that the taxpayer during unscheduled documentary on-site audit and the case file did not provide any documents (quality certificates, laboratory tests, etc.) that would confirm that the taxpayer purchased car fuel. Lack of relevant documents makes it impossible to establish not only origin of products but also compliance of declared fuel brand to actually delivered. Also, neither during the audit, nor to the case materials and the appellate claim, the taxpayer provided information on the availability of specific storage places of purchased fuel of the LLC “August Prom”.

Panel of judges noted that the case file does not contain any documents regarding the use of purchased fuel in the taxpayer’s economic activity. In addition, the case file shows that any payment was actually made for products allegedly received by the taxpayer and analysis of primary documents provided by the taxpayer established that the counterparty did not actually supply oil products to the LLC “August Prom”.

Third Administrative Court of Appeal summarized that the taxpayer had not provided commodity-transport documents that would confirm transportation of petroleum products, taking into account specific requirements for their transportation both before audit and to the court. Provided primary documents in confirmation of products delivery do not contain specific conditions of such deliveries, sales places, loading, unloading of oil products, registration of certificate on verification of the tank truck, etc.

Third Administrative Court of Appeal made a Decision to leave unsatisfied appellate claim of the LLC “August Prom” and leave unchanged Decision of Court of first instance on the refusal to satisfy claims for recognition of notifications-decisions as illegal and their cancellation.

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