A company supplying food for transport services turned to the Business Ombudsman Council with a complaint about the actions of the Main Department of the State Tax Service (STS) in the Kyiv region. Following a scheduled on-site audit, the tax authority concluded that the company had understated corporate income tax and personal income tax (PIT). The business disagreed with this position, arguing that the audit failed to properly take into account key circumstances. The company filed a complaint with the STS of Ukraine and sought support from the Council.
The Council launched an investigation into the matter, analyzing the audit report, tax notices-decisions, and sending an official appeal to the STS of Ukraine urging a fair and comprehensive review of the case. Given the complexity of certain aspects, the Council’s Senior Investigator insisted on holding a administrative hearing to present the company’s arguments in person. The tax authority agreed to this format, and the hearing took place with the Council’s participation.
As a result, the STS of Ukraine fully cancelled the decision concerning corporate income tax and partially cancelled the PIT and military levy assessments. In its decision, the tax authority specifically noted that it had taken into account the Council’s arguments — particularly regarding the unjustified conclusions about foreign exchange differences that, according to the inspection, had affected the company’s financial results.
Thanks to the Council’s involvement, the total amount of cancelled tax liabilities exceeded UAH 14.5 million.
