Kyiv Oblast enterprise avoids a fine from SFS

Subject of complaint: Main Department of the Kyiv Oblast State Fiscal Service (Kyiv  Oblast SFS)
Complaint in brief: On August 23, 2017, a Kyiv Oblast-based enterprise turned to the BOC with a complaint against the SFS. In 2014, the company had made an installment on anticipated profit tax worth UAH 900,000. Then it used this overpayment to cover UAH 300,000 in profit tax in 2015. Meanwhile, the procedure of administering the tax payers personal card was changed at the beginning of 2015, which meant that a technical liability of UAH 300,000 appeared on the Complainant’s account. 
In 2017 the SFS conducted a desk audit of company’s declarations for 2014 and found a reason to impose a fine for improperly written-up documents. The company faced the threat of fine, even though it has long paid all its due taxes and even had an overpayment on its accounts.
Actions taken: In order to avoid the fine, the BOC investigator immediately joined the process of challenging the SFS Act in an administrative suit. In cases such as this one, the BOC makes exceptions to the Rules of Procedure, according to which a claimant must go through at least one administrative instance before submitting a complaint to the Council. The BOC investigator arranged a meeting with senior officials at the Kyiv SFS, during which the two sides agreed that the Complainant had made all payments in time and in full, and the “debt” was entirely technical.
Result achieved: Thanks to proactive approach of the BOC investigator, the company avoided a baseless fine (the Complainant received the Act, but the tax invoices still were not issued). The case was successfully closed at the stage of preliminary assessment review, i.e. in less than 10 days.