SFS drops UAH 76 mn in taxes and fines against distributor from Lviv Oblast

Subject of Complaint: General Directorate of the SFS in Lviv Oblast (SFS)
Complaint in brief: On November 6, 2018, the Council received a complaint from a wholesale distributor from Lviv Oblast. The company did not agree with the tax audit conclusions.
When auditing the distributor’s activities, the SFS questioned the reality of its transactions with several counterparties. Accordingly, the tax authority decided to additionally charge a profit tax and fines to the company worth over UAH 76 mn.
Disagreeing with the tax authority conclusions, the company appealed the decision, but received only a formal rejection in reply without arguments and substantiated replies to objections. Considering its legitimate rights violated, the company turned to the SFS and the Council for support.
Actions taken: The Council’s investigator analyzed the circumstances of the complaint and prepared written proposals to the SFS. The Council also participated in the company’s case consideration at the SFS.
Result achieved: After receiving additional explanations from the Complainant, the SFS took them into account and canceled audit conclusions. The case was closed successfully.