UAH 17mn tax liability of mid-sized service company is dropped

Tax issues: Other issues Zaporizhzhya region

Subject of Complaint: The State Fiscal Service (SFS), the Ordzhonikidze County State Tax Inspection in Zaporizhzhia Oblast
Complaint in Brief: The Complainant, a medium-sized company operating in the service sector, complained that an unsubstantiated tax audit of the company’s activity had resulted in the issuance of three tax notices by the SFS. The tax notices had increased the Complainant’s financial liabilities by over UAH 17,501,966. The Complainant disagreed with the tax authority, filed an administrative complaint to the higher tax authority, and addressed the BOC on November 2, 2015.
Actions taken: Having examined the materials of the case, the BOC addressed the director of the SFS Main Department in Zaporizhzhia Oblast with a recommendation to consider the complaint objectively and impartially, and to take into account a Court ruling that had cancelled the SFS’s original Order that provided the legal basis for the tax inspection. The BOC contacted the Director requesting him to monitor the situation and consider the BOC recommendations in making the final decision in the case. The same request was sent to the Director from the central office of the SFS. 
Result achieved: On February 25, 2016, the Complainant informed the BOC that all tax notices had been cancelled. On March 01, 2016, the BOC received written confirmation that the tax notices had been cancelled from the SFS Main Department in Zaporizhzhia Oblast. The Complainant sent a thank-you letter to the BOC for its assistance, as direct financial impact was potentially UAH 17,501,966.

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