SFS drops a fine worth UAH 2.9 mn against an agricompany from Luhansk Oblast
Subject of complaint: The General Directorate of the State Fiscal Service of Ukraine in Luhansk Oblast (SFS)
Complaint in brief: On October 1, 2018, an agricompany from Luhansk Oblast approached the Council. The company did not agree with the tax audit conclusions, according to which the Complainant had to additionally pay over UAH 6 mn.
In September, the SFS conducted an unscheduled inspection of the company and identified a number of violations. In particular, the agricultural company incorrectly specified a classification code of the goods in tax invoices. In addition, according to the tax authority, the Complainant had to register additional property. The tax authority valued the identified violations at several million hryvnias. However, according to the agricompany, the of the audit findings were unfounded, and the SFS put pressure on the company due to the fact that the Complainant sought to obtain a VAT refund from the budget.
Actions taken: The Council's investigator examined the case files and determined that in two of three episodes of the complaint, legal rights of the agricompany had been violated. Therefore, he prepared arguments and upheld the Complainant’s position. The investigator asked the SFS in writing twice to properly consider the company’s appeal. In addition, the Council participated in the case consideration at the SFS.
Result achieved: With the Council’s involvement, the SFS dropped an additional payment and fines worth UAH 2,9 mn. The case was closed.