LTO reduces penalty fee worth over UAH 4.5 mn. to PEUGEOT CITROЕN Ukraine

Subject of complaint: State Fiscal Service, Large Taxpayers’ Office (LTO) 
Complaint in brief: On July 10, 2018, an official French car importer appealed to the Council. The Complainant disagreed with the amount of a charged penalty fee. 
In January 2018, a District Administrative Court of Kyiv cancelled the decision of the LTO regarding adding taxes to the Complainant’s bill in the amount of about UAH 3 mn. The tax authority issued new tax notifications- decisions for the rest of amounts. The Company promptly paid the amounts specified in the tax notifications- decisions.
However, in a few months, the Complainant discovered there appeared a record of a penalty fee charge in his electronic office totally worth over UAH 5 mn. The fine related to old tax periods starting from June 2011. 
 
Actions taken: Having examined case materials, the Council’s investigator met with the Complainant’s and LTO representatives. The Complainant and the Council proved illegality of the charged penalty fee. 
Result achieved: With the assistance of the Council, the parties agreed to reduce the additionally charged amount up to UAH 656 thousand. This allowed the company not to pay the illegally charged penalty fee in the amount of over UAH 4.5 mn. The case was successfully closed.