SFS drops an additional payment worth over UAH 5 mn UAH against a French agrocompany 

Subject of complaint: Large Taxpayer’s Office (LTO) of the State Fiscal Service of Ukraine. 
Complaint in brief: On May 29, 2018, a French leading grain exporter in Ukraine, turned to the BOC. The Complainant disagreed with the LTO tax inspections conclusions.
As it turned out during the inspection, the Complainant purchased wheat, barley and corn from companies against which criminal proceedings were initiated. Therefore, the LTO treated the Complainant’s transactions with these counterpartiee as fictitious. For the company it meant failure to receive a VAT refund for the said transactions  and imposition of significant fines . 
Actions taken: After examining case materials, the Council’s investigator found that the tax authority conclusions were based rather on assumptions than evidence. To check the Complainant’s position he requested additional documents from the company. In response, the company provided the Council with several hundreds of Consignment Notes confirming purchase of grain for further export. Having supported the company’s position, the investigator applied to the SFS in writing will apply in writing with a request to consider the the Complainant’s case comprehensively and impartially. In addition, the Council participated in the case consideration at the SFS. 
 
Result achieved: According to complaint consideration results, the tax authority dropped an additional payment worth over UAH 5 million. The case was successfully closed.