SFS disciplines employee for violations during an inspection at TOV “MANAD”

Tax issues: Inspections by state tax and fiscal agencies Kyiv region

Subject of Complaint: Main Department of State Fiscal Service in Kyiv Oblast (Kyiv Oblast SFS)
Complaint in brief: On July 20, 2017, TOV “MANAD”, a wholesale grain trader from Kyiv Oblast, addressed the BOC with a complaint against actions of an employee at the Kyiv Oblast SFS office. The Complainant disagreed with the inspection report, according to which the company was fined almost UAH 8 million.
According to the Complainant, the inspection was conducted with significant violations. For instance, the SFS employee refused to work with primary documents and instead stated in the final report that they simply weren’t provided during the inspection. Then, since primary documents were supposedly not available, he assumed that the company had miscalculated exchange rate fluctuations and underpaid almost UAH 8mn to the budget. The company insisted that the SFS employee had no right to challenge their exchange losses and assess extra profit tax. The Complainant sent his reasoned objections to the Kyiv Oblast SFS.
Actions taken: The BOC investigator also addressed the Kyiv Oblast SFS asking the office to check the legitimacy of the SFS employee’s actions and consider the Complainant’s challenge. If there were violations as the Complainant claimed, the BOC investigator insisted on an official investigation to bring those responsible to justice.
Result achieved: After the BOC intervention, the SFS reviewed the inspection report and initiated a second review of the enterprise. Thus, the SFS confirmed that the company had not committed any violations. On September 11, 2017, the Kyiv SFS Office informed the BOC that their employee had been subject to disciplinary action and reprimanded.

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