Tax disputes in court

Tax disputes in court are the direction of a tax consultant and tax lawyer of the law firm AGTL Kharkiv, Kyiv, Odessa.

Modern Ukrainian law enforcement practice is such that, despite the existing pre-trial procedure for settling tax disputes, only the court can put a fair point in the resolution of many of them.

You’re probably wondering how effective it is?

The practice of litigation remains quite loyal to the taxpayer, and in many cases it is possible not only to defend the unwarranted payments, but also to receive additional compensation from the budget. We do not argue that litigation can be quick or simple. As a rule, on the contrary, it is a long and painstaking process, requiring the selection of evidence, analysis of court precedents, preparation of documents and, directly, the conduct of the case in court. However, litigation is the best and often the only way to restore the violated rights and return unnecessarily claimed funds to the budget.

Is it possible to ask the court for more than just restoration of rights?

There are specific measures to protect and restore the rights of the taxpayer, which in practice are used only by the court, in particular, this:

• obtaining the right not to pay the claimed tax to the budget until the end of the trial (which means, at least a deferral in the payment of tax, lasting about 6 months – a year) – is the absence of expense;
• Obtaining the right to demand additional compensation from the budget for tax not paid on time (i.e. the right to additional cash) is income;
• mitigation of penalties even if they were justified;
• compensation from the tax authority for the expenses of a tax consultant representing interests in court, as well as fees and other legal expenses.

Services in tax disputes in court

The vagueness of tax legislation, as well as the contradiction of its interpretation by both tax authorities and courts, create difficult situations for taxpayers in which it is impossible to do without the advice of a professional.Tax disputes in court for companies operating in Ukraine are a very common phenomenon, so you should always be prepared for verification of regulatory bodies and, if necessary, to submit an objection to the facts and conclusions outlined in the Verification Act.

We offer our clients a full range of services related to tax disputes in court, in particular, these services such as:

• Representation of the interests of the taxpayer in all courts;
• Legal reimbursement of taxes, expenses and compensation;
• assessing the judicial prospects of the future dispute.
• Judicial appeal against tax decisions in all instances
• Appealing the results of the inspection
• Challenging the actions of officials
• Challenging regulations and profanity

Tax disputes under the microscope

Very often we are faced with a situation where when appealing tax notices – decisions or other decisions of tax authorities on pre-tax payments in an administrative (pre-trial) order, the final decision on the results of consideration of such complaints is made not in favor of an individual – an entrepreneur or a legal entity, as we want. There are quite a lot of cases that the tax service simply unreasonably refuses to satisfy the complaint filed by an individual – an entrepreneur or a legal person.

What is left to do to the subject of economic activity? And here we remember that it is the district administrative courts that consider tax disputes and therefore it is necessary to file an administrative lawsuit with the said court.

As practice shows, today the first place in the number of cases considered in the administrative courts of Ukraine is occupied by tax disputes.

I think everyone knows that every person is given the right to protect their rights, freedoms and interests, which is provided by the Constitution of Ukraine. The protection of the rights, freedoms and interests of legal and individuals in administrative proceedings is provided by the Code of Administrative Procedure of Ukraine (more on the text – KASU), which is written in Article 2.6 of the KASU.

Every person who believes that the decision, action or inaction of the subject of power violated his rights, freedoms or interests – has the right to file a lawsuit in the administrative court.
Any decisions, actions or inaction of the subjects of power may be appealed in the administrative court, except when the Constitution of Ukraine and other laws provide for a different procedure of judicial proceedings.

In all cases of representation in court, we fully assume the entire procedural paperwork.