SFS agrees to review a challenged violation worth over UAH 138mn

Subject of complaint: Kyiv General Directorate of the State Fiscal Service (Kyiv SFS) 
Complaint in brief: At the end of April 2018, a Kyiv realtor turned to the BOC, claiming that the SFS was accusing the company of a violation worth UAH 138mn, which the company challenged.
During a review, the SFS determined that the Complainant had unreasonably failed to assign to accounts payable income that had passed the statute of limitations, according to the SFS, and should have been considered unrecoverable. The SFS position was based on the fact that during the liquidation procedure the company was going through, the term for creditors to submit claims against it, including the loan in question, had expired.
However, the Complainant insisted that company’s liquidation procedures could not influence the statutory limit. Moreover, the procedure itself had been suspended and the company had resumed operations. In other words, it was not within the tax inspectors’ competence to determine whether the term had expired, especially when primary documents showed that it had not expired. The company challenged the report at SFS and turned to the BOC.
Actions taken: The BOC investigator sent a letter to the Kyiv SFS with a request to objectively consider the Complainant’s claim. In the process of reviewing the objections, he drew attention to mismatch between the expiration term for creditors to submit claims and statute of limitations, as these belonged to of different branches of law. In addition, in the same circumstances, when a debtor was being liquidated, the SFS itself maintained a different position: debt was considered unrecoverable only after the debtor entity was completely liquidated. The BOC investigator also suggested the SFS audit the company again, with the Complainant’s consent, to properly consider all the arguments and studying the firm’s documents.
Result achieved: Based on the BOC recommendation, the SFS agreed to review its conclusions as premature and appointed an unscheduled documentary audit of the Complainant on May 5. The case was closed.