Tables of taxpayer data of shipping company accepted

Tax termination/renewal/refusal of VAT payers registration Odesa region

Complainee:  The State Tax Service (STS), the Main Department of the STS in Odesa region
Complaint in brief: The Council received a complaint from a company that provides transportation and cargo handling services at Chornomorsk Sea Port. The enterprise  complained that the tax authority disregarded tables of VAT taxpayer data and suspended registration of company’s invoices. As a rule, such tables are submitted to clarify information about the company’s business activities and help to prevent blocking of tax invoices.
The reason for the tax decision concerning the company was that the types of activity indicated in the tables did not correspond to existing fixed assets of the payer. However, according to the complainant, the tax conclusions lacked concrete argumentation: it was unclear what sort of fixed assets were missing. Neither audits, nor expert examination was conducted in order to justify the company’s activity suspension. Trying to appeal against the unlawful decision on the disregard of the tables of taxpayer data, the enterprise additionally submitted the explanation on existing technical equipment and other fixed assets to the MD STS. Nevertheless, it did not help to change the tax decision. Due to possible negative consequences for the company and its clients, the enterprise turned to the Council for help.
Actions taken:  The investigator commenced immediate consideration of the company’s case and recognised the complaint as substantiated.  Addressing the MD STS in writing, the Council recommended to reconsider its decision and approve the tables of taxpayer data to unblock tax invoices taking into account provided documents and explanations.
Along with that, the BOC organised an expert group meeting with the participation of the MD STS foreseen by the Memorandum of Partnership and Cooperation between the STS and the BOC. As a result of the meeting, the complainant re-submitted the tables of VAT taxpayer data. The controlling authority accepted it having examined all the given documents.
Result achieved: The MD STS upheld the Council’s recommendations. The fact that the tax authority received the tables of taxpayer data was confirmed by the complainant. The expert group meeting with the involvement of  the STS territorial body proved its effectiveness. The case was successfully closed.

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