Court supported position of tax officials regarding legality of increasing amount of the VAT monetary liability
Press service of the State Tax Service of Ukraine , published 17 May 2024 at 14:03 Chapter: News
Cassation court supported the controlling body’s position regarding legality of adopted decision on timeliness, reliability, completeness of accrual, payment of value added tax carrying out financial and economic operations, which increased amount of the VAT monetary liability.
Conclusions of tax authority are based on registration of financial and economic operations for profit in the form of tax credit formation without their actual implementation.
Having assessed completeness, essence, objectivity and legal significance of the established specific factual case circumstances, taking into account non-submission of documents that, according to usual business practice, accompany implementation of such operations and, together with primary documents, certify their implementation, the courts stated that documents presented by the plaintiff do not confirm performance of works and delivery of products for the plaintiff’s benefit by the aforementioned business entities.
Above specified circumstances combined and interrelated did not give the courts of the first and appellate instance opportunity to establish movement of assets on the way to the plaintiff in the case, participation of counterparties in such chain, real changes in the enterprise’s property status as a result of such relations, its own capital and were quite objective considered as proof of non-commodity of these operations, which excludes their reflection in the company's accounting and grounds for the plaintiff to form tax credit for such relations.
Therefore, Cassation administrative court as a part of the Supreme Court on 16.04.2024 in case № 808/1674/17 dismissed the plaintiff's cassation appeal; rulings of Zaporizhzhia district administrative court as of 18.09.2017 and Dnipropetrovsk appeal administrative court as of 24.01.2018 remain unchanged.