Administrative appeal of decisions of tax authorities

Legal Analysis and Peculiarities of the Procedure for Administrative Appeal of Tax Authorities' Decisions in Ukraine

Administrative appeal of tax authorities' decisions is an important component of the Ukrainian legal system, which ensures the protection of taxpayers' rights. This procedure allows taxpayers to appeal against decisions of tax authorities without the need to go to court, which makes it a faster and less costly way to resolve disputes. Let's take a closer look at the legal aspects, procedure and features of this procedure.

Legal basis and regulatory framework

The administrative appeal procedure is regulated by the Procedure for Filing and Consideration of Complaints, approved by the Order of the Ministry of Finance of Ukraine No. 916 dated 21.10.2015. This regulatory act defines the sequence of actions to be taken by both the taxpayer and the tax authorities in the course of consideration of appeals. An important aspect is that this procedure is an alternative to court appeal and can be used as the first stage of dispute resolution.

Grounds for appealing against tax authorities' decisions

A taxpayer has the right to file a complaint if he or she believes that the tax authority

1. incorrectly determined the amount of tax liability;
2. made a decision that contradicts the current legislation;
3. made a decision that goes beyond its authority.

A complaint may be filed against decisions of both territorial tax inspections and territorial bodies of the State Customs Service of Ukraine, as well as against decisions of tax authorities regarding non-residents.

Deadlines and form for filing an appeal

The legislation stipulates that a complaint must be filed within 10 business days from the date of receipt of the contested decision by the taxpayer. The complaint may be filed in electronic or written form and must contain:

• Identification data of the taxpayer.
• The name of the tax authority, date and number of the contested decision.
• Grounds and justification of the complaint, with reference to the relevant legal provisions.
• Requirements for the results of the complaint consideration.
• Information on the tax authority's notification of the complaint to a higher-level supervisory authority.
• Information on possible judicial appeal.

Procedure for consideration of a complaint

The complaint is considered by a higher-level supervisory authority with the participation of the taxpayer or his/her authorized representatives, as well as, if possible, representatives of the Business Ombudsman Council. It is important that a decision on the complaint must be made within 20 calendar days. If this period is extended to 60 days, the taxpayer must be notified in writing.

Presumption of legitimacy of the taxpayer's actions

The peculiarity of the administrative appeal procedure is that the controlling authority is obliged to prove the legitimacy of its decisions. This means that when considering an appeal, the presumption of legitimacy is on the side of the taxpayer, which is an important guarantee of protection of his rights.

Consequences of the complaint consideration and further actions

If the taxpayer disagrees with the decision, he or she has the right to appeal the decision to a higher-level supervisory authority or in court. If the supervisory authority does not make a decision within the prescribed period, the complaint is considered satisfied.

Administrative appeal of decisions of tax authorities is an effective tool for protecting the rights of taxpayers in Ukraine. This procedure avoids lengthy litigation and ensures a quick resolution of disputes. Importantly, when it is applied, the supervisory authority is obliged to prove the legitimacy of its decisions, which contributes to the objectivity of complaints and protection of taxpayers' interests.

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