Renovation completed: SAMSUNG proved to SFS reality of received services 

Tax issues: Inspections by state tax and fiscal agencies Kyiv

Subject of complaint: Large Taxpayers’ Office (LTO of the State Fiscal Service (SFS) 
Complaint in brief: On June 27, 2018, SAMSUNG, a world’s electronics manufacturer turned to the Council The company did not agree with the violations detected by the LTO in the course of inspection in the amount of over UAH 300 thousand. 
The subject of the dispute was the renovation recently performed in the Complainant’s premises. According to the tax authority, a construction company, the company concluded the contract with, did not have enough human and material resources to make such a renovation. Therefore, the contractor engaged  third parties to perform these works. And, as it turned out, these individuals appeared in a criminal case on suspicion of conducting fictitious activities. Therefore, the tax authority insisted that the renovation was a fictitious operation. That’s why the LTO decided to deprive the Complainant of the right to a VAT refund, charged an additional income tax and imposed a fine on it. 
However, the company insisted that the renovation of the premises still took place, and it paid for it. Contractors’ relationships with third parties, according to the company, were beyond its control.
Actions taken: Having examined case materials, the Council’s investigator found out that renovation services received were real. He participated in the Complaint hearing at the SFS and upheld the company’s position. 
Result achieved: On August 22, the company informed the Council by e-mail of successful completion of Complaint consideration. The SFS fully canceled a fine of over UAH 300 thousand taking into consideration the position of the Council. The case was closed. 

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