A company specializing in real estate leasing approached the Business Ombudsman Council. The company disagreed with the results of a tax audit.
The capital’s tax officials concluded that the company untimely registered the invoices drawn up on the eve of the russia’s full-scale invasion and in the period until January 2024. The enterprise attempted to appeal the tax audit results independently. However, the tax authority did not change its decision and also imposed a fine of over half a million hryvnias on the company.
During its investigation, the Council discovered that the company had already paid a fine for late registration of tax invoices. The tax authorities, however, conducted a second audit and essentially doubled the fine. Furthermore, the Council found that the tax authority had erroneously applied for an increased fine for late registration of invoices related to transactions involving the use of non-current assets.
The Council sent a letter to the State Tax Service of Ukraine (STS) and supported the company’s position. Additionally, the Council participated in the review of the complaint via video conference. The Council noted that the Tax Code prohibits penalizing an individual twice for the same tax violation, especially considering that the company had already paid its initial fine.
Consequently, with the Council’s assistance, the STS decided to cancel a significant part of the penalties in the sum of UAH 539k which amounted to 87% of the total amount.
