At the end of February 2023, the Main Department of the STS in the city of Kyiv (MD STS) refused accepting the company’s income tax declaration for 2022. It was all because the complainant was allegedly not an income tax payer, since he had been on the simplified taxation system since 2016, and therefore was not entitled to submit respective declarations. However, the company reported that the year before in March 2022 it had submitted an application to waive the single tax through the e-office. Since the legislation did not set a clear time frame for considering such an application, the entrepreneur, not having received a refusal to satisfy his application within a year, expected the tax office not to have any objections, so he had switched from the simplified to the general taxation system since April 2022.
While working on the case, BOC participated in reviewing the company’s administrative complaint materials and repeatedly discussed the case at the Expert Group meetings with the STS and the MD STS. It turned out that the capital’s tax officials, for objective reasons, did not timely process the application submitted by the complainant in March 2022, that is, at the beginning of the full-scale war. Therefore, the company, without knowing it itself, was further considered a single tax payer. Moreover, in the course of investigating the complaint, the MD STS also decided to exclude the company from the Single Tax Payers Register from April 2023 because of the debt.
Subsequently, the STS managed to find the application submitted by the complainant in March 2022. Since it was drawn up correctly, the STS satisfied the payer’s original complaint and canceled the MD STS decision to refuse accepting the income tax return, while obliging the regional tax office to correct the information about the enterprise in the Single Tax Payers Register. This made it possible to restore justice and retrospectively switch the payer to the general taxation system from April 2022.