UAH 708k returned to private entrepreneur

Tax issues: Criminal proceedings against business initiated by State Fiscal Service Kyiv

Complainee: The State Tax Service (STS), Large Taxpayers Office of the State Fiscal Service (LTO)
Complaint in brief:  The BOC received a complaint from a Kyiv-based private entrepreneur. The businessman complained that investigators did not return previously seized property. Within criminal proceedings, law enforcers conducted a search at the businessman’s premises and seized over UAH 700k. Although the court lifted the complainant’s property arrest, investigators did not return funds for over six months. The private entrepreneur repeatedly appealed to the Investigative Department of Financial Investigations of the SFS and demanded returning temporarily seized property. As the businessman didn’t manage to challenge law enforcers actions on his own, he asked the BOC for assistance. 
Actions taken: The Council examined the case file and found the complaint substantiated. The Council recommended that the LTO enforce the court decision that had entered into force and return seized funds to the complainant. The Council emphasized that non-enforcement of a court decision violated the rule of law. In particular, in accordance with Article 169 of the Criminal Procedure Code of Ukraine, temporarily seized property shall be returned to the owner in case the arrest is lifted. 
Result achieved: Owing to the Council’s mediation, the LTO enforced the court decision and returned seized funds to the private entrepreneur. The case was closed.

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