Lawyer, expert in tax law, protection of clients' interests in tax disputes, provision of professional advice on tax issues, appeal of unlawful decisions of tax authorities, optimization of tax burden.
A client contacted the Law Office “Prikhodko & Partners” in connection with receiving a letter from the tax authorities regarding the declaration of income received abroad, namely in the United Kingdom. The letter indicated the total amount that, in the opinion of the tax authority, was subject to taxation and from which the tax amount was 20 thousand US dollars. However, the client did not actually receive the entire amount, since her income from fitness activities was passed through an agency that withheld part of the funds as payment for its services. Thus, declaring the entire amount did not correspond to the actual circumstances, since her real income was much lower.
Complexity of the situation:
The situation was complicated due to the lack of proper understanding by the tax authorities of the mechanism of income receipt, as well as the calculations that were actually carried out through the agency. Additional difficulties consisted in the need to justify to the tax authority that the client did not have to declare the entire amount, since she actually received only part of the funds after deductions made by the agency.
Decision from the Law Office “Prikhodko & Partners”:
The lawyers of the office conducted a thorough analysis of the situation, in particular:
Study of documents and calculations: All documentation confirming the client’s actual income and the structure of cooperation with the agency was collected and analyzed. This allowed us to establish a clear distribution of funds and confirm the amount that the client actually received after deductions.
Preparation of explanations for the tax authority: A legally substantiated position was prepared for the tax authorities, which explained in detail why the total amount indicated in the letter cannot be declared as income. Instead, an explanation was provided with actual data on the amount received that was subject to declaration.
Support in submitting a revised declaration: Law Office “Prikhodko & Partners” submitted a declaration on behalf of the client, in which the income actually received by her was declared. The firm’s lawyers provided full support for the process, preparing all the necessary documentation and justification for the tax authority, which allowed the actual amount of income to be correctly reflected.
Result
After submitting the tax return and providing reasoned explanations, the tax authority revised the initial assessment and recognized the legitimacy of the declared amount. Instead of the previously indicated 20,000 USD, the tax amount was revised to a much lower 3,600 USD. Thanks to a professional approach to the issue, the client managed to completely avoid an unfairly high tax assessment. The tax authority confirmed the absence of violations on her part, which finally resolved the case in the client’s favor and saved her a significant amount of money.
This case is an example of how the Law Office “Prikhodko & Partners” successfully protects the interests of clients in complex tax situations. Thanks to the bureau’s professional approach, we managed to achieve a fair resolution to the issue, providing the client with the opportunity to declare only the income actually received.
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