SFS drops tax rulings worth over UAH 1 million

Tax issues: Inspections by state tax and fiscal agencies Kyiv

Subject of Complaint: Main Department, State Fiscal Service in Kyiv (Kyiv SFS) 
Complaint in brief: On March 13, 2018, a Kyiv production and distribution company addressed the BOC. The Complainant was challenging the results of a tax audit that resulted in a ruling that it should pay over UAH 1 million in additional taxes and penalties.
Among others, the SFS deemed fictitious some of the firm’s transactions over 2014-2016. This meant that the company was additionally charged VAT and corporate profit tax, as well as a penalty for delayed registration of tax invoices The Complainant said that all its business transactions were supported by documents, all counteragents were checked during the bilateral relationship, and there was no evidence of fictitiousness. The company appealed the Kyiv SFS tax ruling and turned to the BOC for support. 
Actions taken: Having studied the materials of the complaint, the BOC investigator participated in hearings of the Complainant’s case at the SFS office. In addition, he sent a letter to the SFS in which he supported the company’s position. 
Result achieved: With the assistance of the Council, the SFS canceled tax rulings against the company worth over UAH 1.0mn. All that remained was a fine for delayed registration of tax invoices, which amounted to less than UAH 2,000. The case was closed successfully.

Next case:: Financial investigators’ unlawful actions against sugar producer are halted