A company engaged in the production and sale of paint and varnish materials turned to the Business Ombudsman Council with a complaint against a decision by the tax authority. Following a scheduled documentary audit, the Main Department of the State Tax Service in Dnipropetrovsk region issued six tax notices-decisions totaling over UAH 530,000.
The tax authority cited several alleged violations, including overstated expenses for fuel and lubricants, use of fuel for non-business purposes, and storage of fuel for personal use without the required licenses. Additionally, the tax office claimed that the company failed to report taxable assets more than ten years ago.
During the audit, tax inspectors also concluded that the company had allegedly overstated expenses related to the repair of roofs on two warehouses damaged by shelling. All arguments by the tax authority in this episode concerned the complainant’s contractor. In particular, the tax officials believed that the contractor was physically unable to carry out the work due to the lack of necessary equipment and staff and that the contractor had not submitted the 20-OPP form.
The company appealed the tax notices-decisions to the State Tax Service of Ukraine and sought support from the Council. After analyzing the complaint materials, the Council provided a well-founded position on each episode and joined the administrative appeal process.
As a result of the review, the State Tax Service of Ukraine partially upheld the complaint, canceling four out of six decisions, including the one related to roof repairs, for a total amount exceeding UAH 430,000.
