Tax matters

Citizens, stateless persons, adults and minors, large and small enterprises, joint-stock companies, and public organizations – they all face certain problems connected to the taxation legislation. From payment of the real estate or land tax by the real estate owner private person to the payment of taxes in the territory of Ukraine by a non-resident legal person – all of that is regulated by the tax law of Ukraine with its fundamental provisions stipulated in the Tax Code of Ukraine.

Numerous norms stipulated in a single codified act cause significant problems for understanding and applying a particular norm to a particular situation. That is exactly the problem that our legal firm is familiar with, and thus, can deal with it in a quick and timely manner. That will save you the money and the time spent on unaided search considerably.

Tax cases: origins

Tax relations emerge in the process of fulfillment by the state and local authorities of the functions designed to collect taxes, fees, and other mandatory payments in favor of the budgets (state and local) and special funds.

The list of the taxes, fees, and other mandatory payments is provided exclusively by the Tax Code of Ukraine. Everyone pays taxes: the citizens pay taxes when purchasing real estate and receiving the gift of property. When getting the salary, private person entrepreneurs and legal persons pay the single tax, income tax, value-added tax, land rent, etc.

Application-wise, the most complicated and controversial is the collection of taxes and fees from private person entrepreneurs and legal persons. Regardless of an extensive amount of by-laws, consultations of supervisory bodies, judicial practice in this category of tax relations gets formed and changed several times a year. That is exactly why the consultation of practicing tax law attorneys is a must-have component of successfully planning any working scheme on any enterprise regardless of revenues or number of employees.

Tax disputes in the course of economic activities arise every day. Some of them get resolved through reviews of the consultations of the supervisory bodies on the Internet, others may last for years. The payers contest the following: unlawful actions of the tax authorities conducting inspections and of the supervisory bodies concerning the termination of tax invoices registration, categorization of the payer as the risky one, failure to pay penalties, etc.

Tax cases and court

The tax disputes and judicial practice concerning unlawful actions of the inspecting supervisory bodies are about proving the fact that the inspection was held without probable cause, that is:

  • proving the absence of the order to conduct the inspection;
  • proving the absence of the credentials of the inspectors;
  • proving that the timing of the inspection doesn’t match the time frame for conducting one;
  • proving the failure to put the inspection into the plan, etc.

Judicial practice on contesting unlawful actions of the supervisory body on cessation of tax invoice registration and categorizing the payer as the risky one is about:

  • proving the real ability of the payer to carry out certain economic operations;
  • proving the availability of material, financial, and labor resources with the payer;
  • proving the lack of reliable information on the payer’s inability to perform certain operations with the supervisory body.

Regarding this issue, the Supreme Court, in its ruling of March 3, 2020, Docket 2039, stated that the decision that the payer meets risk criteria doesn’t violate the rights of this payer, and thus it is impractical to contest such decisions. It is practical, though, to contest the decision on termination of the tax invoice registration by proving its unlawfulness with the lack of grounds to categorize the payer as the risky one and, thus, the lack of legal the grounds to terminate the tax invoice registration.

Untimely payment of the tax obligations

Judicial practice on untimely payment of the tax obligations, for instance, on the transfer of the payment deadlines for the tax obligations, is as follows. Initially, the payers used the resolution of the Supreme Court of Ukraine of June 9, 2015, as the reference, in compliance with which the deadline to pay the obligations was calculated from the moved deadline to submit the declaration. However, in 2019 tax authorities changed their opinion and proclaimed the deadlines to pay taxes and fees (except single social security tax) not to be subject to the transfer and the obligations liable to be paid before the deadline.

There is also a large number of court cases that shape the practice of trying tax disputes. But the problem of such judicial practice concerning trial and resolution of tax disputes is that numerous court rulings construe the same norms of tax legislation differently.

Our legal firm is always ready to assist you in solving the most complicated cases connected to the application of the tax legislation norms. But we still believe it is better to prevent the emergence of tax disputes, and, to that end, we advise you to turn to our team of tax law attorneys – experts in the field of tax legal relations that are ready to answer your questions or come to provide legal aid at any time.