Ruslan Kravchenko: the Supreme Court ordered the Joint-Stock Company Southern Mining and Processing Plant to pay 3.7 billion UAH to the budget

Press service of the State Tax Service of Ukraine, published 23 April 2025 at 14:57 Chapter: News

The Supreme Court ordered the Joint-Stock Company Southern Mining and Processing Plant to pay 3.7 billion UAH to the budget. These are taxes and fines for improper use of tax benefits for payment of dividends by this company to the Cypriot companies. The Court supported position of the State Tax Service of Ukraine, satisfying cassation appeal. This was informed by Head of the State Tax Service of Ukraine Ruslan Kravchenko in the Telegram channel.

"Tax authorities, during the audit, detected that more than three years the Joint-Stock Company Southern Mining and Processing Plant transferred dividends to 12 shareholders – Cyprus residents. Total amount is 29.8 billion UAH. Paying dividends, a preferential 5% tax rate was applied, 1.49 billion UAH was paid to the budget. A thorough audit showed that these Cypriot companies are "technical". Received funds were promptly transferred to companies – residents of Netherlands. Therefore, the Cypriot companies are not beneficial owners of income, preferential taxation is illegal" – noted Head of the State Tax Service.

Therefore, employees of the State Tax Service has additionally accrued principal payment – 2.98 billion UAH and fines totaling 0.8 billion UAH. Company appealed position of the Tax Service in the court. However, the Supreme Court put an end to the legal proceedings by cancelling decisions of the two first instances.

The Joint-Stock Company Southern Mining and Processing Plant, after publication of the court decision, has 10 days to pay appropriate funds to the budget. In case of non-payment, accounts will be blocked through the court and property will be seized for the amount of debt.

"Audit materials will be transferred to the law enforcement agencies for appropriate processing. If the one evades taxes, there will be legislative liability. No exceptions!" – noted Ruslan Kravchenko.