SFS drops additional charges worth UAH 1.2 mn to Lviv company

Tax issues: Inspections by state tax and fiscal agencies L'viv region

Complaint in brief: Lviv Department of the Large Taxpayers’ Office of the State Fiscal Service (Lviv LTO Department)
Complaint in brief: On September 7, 2018 a leading Ukrainian manufacturer of foods for domestic animals turned to the Council. The Complainant disagreed with the tax audit conclusions, according to which he had to pay about UAH 1.5 mn. of additional taxes and fines.
Having audited the company’s activities, Lviv LTO Department questioned some operations with its counterparties. In particular, the tax authority identified delivered marketing services as fictitious. Questions about the reality of services were also triggered by corn supplies.
According to the Complainant, such Lviv LTO Department conclusions were ungrounded and arguments provided were illegal and unacceptable. Therefore, the company challenged them in the SFS and turned to the Council for help.
Actions taken: Having thoroughly studied case materials, the Council upheld the company’s position. The Council’s investigator informed the SFS thereof in writing He also participated in the company’s complaint consideration at the Fiscal Service.
Result achieved: With the assistance of the Council, in early November, the SFS dropped two of three tax notifications-decisions. It allowed the manufacturer to avoid paying taxes and fines totally worth over UAH 1.2 mn. The case was closed.

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