All individuals and legal entities pay obligatory payments, no one is immune from controversial situations in this regard. Tax contests can relate to a variety of circumstances: accrual of fines, refusal to refund VAT, inspections, claims from duty officials, etc. The initiators of disputes, most often, are taxpayers who disagree with the decision of the fiscal authority (state tax service, STS).
Sometimes the problem can be resolved without a trial – to file a complaint with the higher STS (appeal the resolution). In other cases, you have to file a lawsuit. SION’s tax lawyer assists in both situations. We accompany controversial issues until they are resolved, defend the interests of clients, and we have extensive practice in working with such cases.
Why you should trust SION, We:
- have experience since 2011.
- always find the necessary and essential arguments that the client may miss.
- do not take actions that worsen the situation.
- prepare confidently, draw up the necessary documents.
- provide assistance with taxes in the form of advice and support in front of the court.
- go through all the stages of the contest with the client until successful completion.
Obligatory payment consulting is a popular procedure among entrepreneurs and accountants. People come to us with such questions:
- selection of the optimal taxation system;
- optimization and planning of taxes for business;
- VAT refund;
- payment of a single tax for land, from income;
- payment of taxes by non-residents;
- minimization of tax risks when signing contracts;
- taxation of royalties, royalties;
- actions during the check of the STS, etc.
For many years we have been accompanying companies on tax issues, studying innovations and court decisions. Our experts help you understand how to act in a particular case, guided by the application of laws in practice and real precedents. During each consultation, SION employees assess the specific situation and prepare an individual strategy.
We remind you: according to Ukrainian law, a taxpayer can contact the state office for individual advice (clarification). It is provided free of charge in oral, written or electronic form and is entered in the register. The taxpayer is released from liability for actions taken in accordance with such recommendations. Our attorney helps you to correctly fill out a request to the STS.
Judicial procedure for resolving tax disputes
One of the 5 cases of consideration by Ukrainian courts concerns taxes, compliance with tax legislation. Such cases are considered by administrative courts at the location of the applicant or the defendant. For example, a Kiev or Kharkov enterprise applies to the District Administrative Court of Kiev or Kharkov (respectively).
In the process of judicial settlement, we perform the following actions. We:
- analyze the situation, formulate a legal position to develop a line of defense.
- make an objection to resolutions or actions based on the results of the audit.
- prepare documents for filing a lawsuit.
- represent the client at meetings.
- prepare petitions, statements, objections in the course of consideration.
- are finishing the contest settlement process.
- control the execution of the judgment.
Dispute resolution in court takes 90 days or more. Our experts help resolve contests in the judiciary in the interests of the company, save the client from paying unlawfully accrued obligations or fines.
The law sets the deadlines for filing claims against the STS. They make up:
- 6 months from the date when the applicant learned about the violation of his rights;
- 3 months from the date of delivery of the decision on his complaint (after administrative / pre-trial consideration).
The deadlines must be strictly observed. Our experts will not allow them to be violated.
Individual tax disputes
Ukrainian individuals and sole proprietors pay obligatory payments a little differently than legal entities, there are several groups of payers. Accordingly, their cases are specific. For example, pensioners who are sole proprietorships are exempted from the payment of ERUs (according to the resolution of the BP of the Supreme Court (BC) of 10.04.2019 in case No. 814/779/19). And self-employed sole proprietors cannot be subject to the accrual of double ERUs, although recently it was different.
When filing a lawsuit, an individual and an individual entrepreneur must pay the following state fees:
- Property claim (for example, appeal against a decision notice) – 1% of its amount, but not less than 0.4 of the living wage (LW) and not more than 5 LW for able-bodied workers. For December-2021, the LW for the able-bodied is USD 100, the amount of the fee will be USD 70-500.
- Non-property claim (refusal to register a tax invoice, etc.) – 0.4 LW size.
There are many other features and norms in relation to individuals, which are interpreted ambiguously by the STS. Our specialists study judicial practice and resolutions of the Armed Forces regarding individuals in order to know the latest changes, and apply their knowledge in practice.
Tax advice for legal entities
Companies need not only to properly pay contributions to the treasury, but also to draw up reports. Requirements are constantly changing and updating. We track them and will be able to give the legal entity updated information during the consultation. We also advise on how to optimize budget contributions so that more money can be spent on the development of the company.
If there is a dispute or a penalty threatens, you should also use the consulting service. This protects the interests of the business and helps to properly organize the record keeping in order to prevent penalties.
If necessary, we help protect the company’s rights from actions or resolutions of STS by appealing or filing a claim. The pay’s of legal entities pay the following state dutys for judicial resolution of tax contests:
- Submission of a property claim – 1.5% of its price, but not less than 1 living wage (LW) size and not more than 10 LW for able-bodied workers (in December-2021 this is USD 100-1000).
- Non-property claim – 1 size of the LW.
Appealing against decisions of state authorities
In addition to going to the judiciary, there is a pre-trial option for resolving disputes with the state inspectorate. This is an administrative appeal to the higher authorities of the STS. The method is simpler, faster, and saves resources. So you can appeal the following resolutions:
- on the seizure of the assets of the taxpayer;
- on the prohibition of transactions with pledged assets;
- on the sale of assets placed on bail;
- notifications-decisions from the state office and so on.
Thus, it will not come out to appeal against acts (inspections, refusal from the inventory of property in a tax lien, etc.). The complaint must be filed within 10 working days from the date of receipt of the document. If the deadline is missed, we submit an application for its renewal, there are 6 months for this. You need documents confirming the valid reason for the pass (being abroad, etc.). The periods are suspended for the period of the quarantine.
Even employees of the STS with a lot of practice can make mistakes due to incorrect interpretation of norms, a subjective assessment of the situation. In order not to pay excessively assigned obligations and not to sue, we recommend filing an administrative complaint. By the decision of the Supreme Court, the omission of the deadline for considering the complaint by the STS is interpreted in the direction of the payer and removes the sanctions imposed from the latter. We use this moment to the advantage of the client.
Arbitration tax disputes
Sometimes contests are resolved not in an administrative court, but in an arbitration judiciary. This happens if there was previously an unsuccessful attempt at pre-trial appeal against the actions of the state authorities. In the course of arbitration controversy, the unlawful fiscal authorities actions are challenged. Namely, if necessary:
- State Tax Service decision appeal;
- unblock tax invoices;
- cancel incorrectly calculated obligatory accruals;
- to return overpaid duties, but they do not want to return them;
- cancel the incorrectly accrued penalty or penalty.
We provide support for arbitration claims in any city of Ukraine. We help clients restore violated rights thanks to our experience, knowledge of law and court precedents. We even tackle difficult cases.
Tax consultation cost
Initial oral or online consultation is provided free of charge. Further, the price depends on the scope of the consultation. An hourly consultation, which helps the taxpayer to protect himself, costs USD 150. (orally) and USD 200. (in writing). Comprehensive subscription support (several consultations within a certain period of time) cost a little less.
Our employees have the best practices to guarantee the results of cooperation. If you do not know how to reflect a business transaction in accounting, we suggest such a solution so that the state authority does not have doubts. For any question asked, we find explanations of the regulatory authorities.
Tax disputes: cost
When applying to the court, the state fee is paid for a business entity, as well as remuneration for the work of a lawyer of SION. The latter may differ, taking into account the volume of actions that need to be performed. When accompanying controversies in the judiciary, the cost of services starts from USD 450.
Lawyers‘ fees, fees, and other legal costs are paid by the applicant. However, there is the possibility of reimbursement of costs at the expense of the losing party by a court decision. We make sure that STS reimburses costs in case of a loss. We draw up an official contract with the client, we consider all his expenses in the course of office work. Refunds are made on the basis of these documents.
Contests with fiscal authorities are a complex legal process, so we recommend using the services of specialists. Successful resolution of conflict situations requires unique legal knowledge, skills of participation in litigation. Our specialists know all this and are able to, they will take effective steps.
If you think that the STS has incorrectly calculated the amount of the monetary obligation or made a resolution contrary to the law, please contact. We help you prepare documents, file a complaint about the state authority complaint action, or file a claim. To start cooperation, please fill out the feedback form and we will contact you or write to us by mail: email@example.com.