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SFS drops a fine for a sewing equipment supplier

18.01.2019

Subject of complaint: General Directorate of the State Fiscal Service of Ukraine in Khmelnytskyi Oblast (Khmelnytskyi SFS) 
 
Complaint in brief: On October 7, 2018, Shveymash, a sewing equipment supplier, addressed the Council. The Complainant disagreed with the tax audit conclusions according to which he had to pay a fine of UAH 28k. 
 
According to the SFS, their “Mystery Shopper” visited the Complainant’s store, ordered a sewing machine and made a down payment for it. In confirmation thereof, the buyer received a sales invoice. The invoice was the ground for the company to be accused of making settlements off the books.
 
However, according to the Complainant, there was no such a purchase at all. The sales invoice contained the other company details, as well as the buyer's and supplier's representative details unknown to the Complainant. Moreover, the seller did not have the item shown on the invoice at all. The enterprise did not agree with the audit findings and appealed them in the SFS. 
 
Actions taken:
The Council’s investigator studied case materials. He paid attention to the fact it was incorrect to conclude on improper accounting of the Complainant based on the sales invoice that became the “evidence” of the SFS. In particular, the sales invoice neither contained the necessary details to be considered an original document, nor any sufficient identification information that would give grounds to state this document had been issued by the Complainant. Having made sure that the facts and evidence testified in favor of the Complainant, he promptly sent a letter to the tax authority and also upheld the company’s position during the hearing of the case in the SFS of Ukraine. 
 
Result achieved:
With the Council’s involvement the SFS reviewed the audit conclusions and dropped the fine. The Complainant thanked the BOC for its active participation and support in resolving the case. The case was successfully closed.