APPEALS AGAINST DECISIONS OF TAX AUTHORITIES
A tax dispute arises when a director or owner considers a decision of the tax authority incorrect and wishes to protect the company's money and legal position. The Tax Code provides for administrative appeal and judicial protection.
For a tax notice-decision, an administrative complaint is filed within 10 business days following the day it is received.
What Exactly the Taxpayer Protects
A dispute may concern tax, a penalty, registration of a tax invoice, taxpayer status, the results of tax control or another decision of a supervisory authority. The owner defines the economic objective: cancel an assessment, restore a right, preserve a tax credit or obtain another result provided by law.
The lawyer reviews the report resulting from the control measure, the tax notice-decision, primary documents, contracts, accounting records and correspondence. The accountant explains the figures and the actual substance of transactions. The director confirms how the company actually worked with the counterparty and why the relevant expenses, income or taxes were recorded in that way.
A strong position is based on the facts of the specific business transaction. For a purchase, these are the contract, delivery, payment, use of the goods and accounting treatment; for a service, the substance of the work performed and its connection with the business. Legal arguments supplement the factual evidence.
Before an appeal begins, the owner compares the amount in dispute, the cost of legal work, the time involved and the possible effect on other tax periods. A substantial or precedent-setting matter warrants a full legal position; for a smaller amount, protection of an individual episode may sometimes be sufficient.
Before a tax notice-decision is issued, a dispute often begins with the tax-control report and the taxpayer's explanations. The director, accountant and lawyer set out the factual circumstances and provide documents within the deadlines established by the Tax Code. A well-prepared response to the control materials can narrow the subject of a future dispute before the final decision is issued.
Administrative Complaint and Court Proceedings
Article 56 of the Tax Code establishes the administrative appeal procedure. A complaint against a tax notice-decision is filed within 10 business days following the day it is received. The lawyer records the date of service and prepares the requested relief according to the decision being challenged.
A complaint may be filed in written or electronic form. The official State Tax Service Information and Reference Resource expressly provides for filing through the 'Correspondence with the State Tax Service' menu in the private section of the Electronic Cabinet. Evidence of filing is retained with the case materials.
In the administrative complaint, the taxpayer sets out the facts, legal provisions, amount and requested relief and attaches documents supporting the position. The director signs the complaint or grants appropriate authority to a representative.
Judicial protection is used in accordance with the Tax Code and the Code of Administrative Procedure. The lawyer determines the claims and evidence supporting the infringed right. For the owner, the final outcome, duration and cost of such protection are important.
Administrative and judicial procedures have different deadlines, costs and possibilities. The lawyer explains these differences before the first document is filed and proposes the option that corresponds to the amount in dispute, available evidence and the owner's commercial objective.
Documents, Deadlines and Cost of Protection
Tax disputes are often won through the quality of primary documents and a clear explanation of the commercial purpose. The director retains contracts and correspondence, while the accountant retains primary documents, registers and reporting. The lawyer combines them with legal arguments for each disputed episode.
Deadlines have independent significance in tax disputes. The owner provides the decision to the lawyer immediately upon receipt so that sufficient time remains to assess the evidence and prepare a complaint or claim. The date of receipt is evidenced by electronic or paper service data.
The cost of protection depends on the amount and complexity of the dispute, the number of episodes, the volume of documents and the chosen appeal procedure. The owner may commission a separate legal opinion, an administrative complaint or full representation. The scope of work is agreed before document preparation begins.
UBC can engage a tax lawyer and accountant to assess the dispute. For the first consultation, it is sufficient to provide the tax-control report or decision, a brief explanation of the factual circumstances and the main documents relating to the disputed transaction.
For the owner, the result is a clear amount in dispute, list of evidence, filing deadline and cost of legal work. The owner can then decide on an administrative complaint, court proceedings or another method of protection provided by law.
Need support or a specialist in your region?
UBC can propose a tax lawyer in your region. The owner provides the decision or tax-audit report, and the specialist assesses the appeal deadline, amount in dispute and the documents on which the position can be built.
A tax dispute should be assessed through the money at stake, the evidence and the deadline for protection. UBC will help the owner engage a tax lawyer, determine an appropriate appeal procedure and prepare a position based on the business documents. We will be pleased to answer additional questions. We wish you every success in business!
Why is it better with UKRBUSINESSCONSULT?
The main areas of the UBC group include financial and investment services, assistance with obtaining credit and attracting investors, the purchase and sale of existing businesses, IT services, and commercial property development in Ukraine and abroad. Company registration in Ukraine and abroad, corporate law, offshore and offshore company services, business consulting, audit, certification, LLC registration, registration of financial companies, asset management companies and mutual investment funds, registration of joint-stock companies, securities and bond issues, support for foreign investment, construction licences, permits for design and construction, and other services for successful business in Ukraine - we provide our clients with a complete turnkey range of business services in the shortest practical time. Our continuously expanding network of regional and international partners helps resolve our clients' matters effectively when doing business both in Ukraine and abroad.
We always work towards the result you need and will do everything necessary to achieve it within the required timeframe, taking account of your wishes and requirements. Why is it better to start a business in Ukraine with UBC? The answer is simple: we have considerably more practical experience, resources and opportunities. We have been and remain leaders in Ukraine in corporate services, and UBC's corporate structure comprises more than 10 companies operating in different business sectors.
Frequently Asked Questions
What is the deadline for an administrative complaint against a tax notice-decision?
The Tax Code establishes 10 business days following the day on which the tax notice-decision is received.
What forms the basis of a tax position?
Contracts, primary documents, accounting data, the actual substance of the transaction and the relevant legal provisions.
Can court proceedings be started immediately?
The method of protection is determined by the Tax Code and procedural law. A lawyer will explain the deadlines and consequences of each option to the owner.
What determines the cost of a tax dispute?
The amount, number of disputed episodes, volume of documents, complexity of the legal issue and chosen form of representation.
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