SFS finally refunds UAH 4 mn to Procter & Gamble Ukraine

Subject of complaint: The State Fiscal Service (SFS), Large Taxpayers’ Office of the SFS (LTO)
Complaint in brief: The Council received a complaint from the Ukrainian representative office of the world’s leading FMCG manufacturer. The Complainant tried to align its integrated card information taking into account court decisions that cancelled SFS tax audits findings.
In 2013, the Complainant’s company was reorganized, and all the rights and obligations of the former legal entity were transferred to a new company. Integrated cards merging of two companies took place. The SFS had to correctly display overpayments on legal successor’s accounts and refund the VAT for almost UAH 4mn. However, when a new legal entity applied to the tax authority, it was refused by instructing on the necessity to address the LTO where the legal entity was registered. In turn, despite numerous appeals of the company, the LTO was also slow on solving the issue by redirecting the Complainant to oblast tax authority.
The Complainant appealed to the Council with the said issue.
Actions taken: Having examined the circumstances of the case, the Council’s investigator addressed the LTO in writing. In addition, Council representatives held a working meeting with the LTO top management. The Council asked to reflect information on available overpayments, as well as the VAT refund in the Complainant’s integrated card. The investigator stressed it was required by the relevant court decisions.
 
Result achieved: With the Council’s facilitation, the LTO promptly teamed up with the regional tax authority and gave the latter corresponding instructions. At present all changes in the taxpayer’s integrated card are displayed correctly. The Complainant confirmed that the problem that lasted several years was successfully resolved.