Legal support for individual entrepreneurs

Tax issues: Other issues Kyiv

Complainee: State Tax Service (STS), Main Department of the State Tax Service in Kyiv (MD STS)
Complaint in brief: The Council received a complaint from an individual entrepreneur from Kyiv. The entrepreneur disagreed with the tax audit findings. According to the tax authority, the private entrepreneur did not pay a single tax to the budget on time and fined the complainant for UAH 54k. The entrepreneur sent a complaint to the STS and simultaneously turned to the Business Ombudsman Council for help.
Actions taken: After examining complaint materials, the investigator acknowledged the complaint was substantiated. The investigator found out the complainant had not violated single tax payment terms. However, it turned out that the entrepreneur had made a technical error in payment purpose and specified an incorrect taxpayer code. Thus, payments were not linked to the complainant’s account, although tax amounts had been credited to the treasury account in full. Besides, it turned out that the private entrepreneur made a mistake in the single taxpayer’s tax return, where he had specified the amount of taxes for the last quarter on his own, although at that time he was on the general taxation system and was not a single taxpayer any longer.
In view of the fact that Complainant timely and fully maid payments, referring to the relevant court practice, the Council supported the private entrepreneur’s position. 
The Council recommended that the STS ensure a full, comprehensive and impartial consideration of the entrepreneur’s complaint and cancel the disputed tax decision. In particular, the BOC asked to consider the complaint of the STS remotely with the participation of the Council and the complainant due to COVID-19 pandemic.
Result achieved: The STS followed the Council’s recommendations and satisfied the private entrepreneur’s complaint. The fine was canceled. The investigator successfully closed the case.

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