Court appeal against tax invoice blocking

When tax invoices are blocked, representatives of the DPS are not always ready to reasonably explain why they believe that the business operation should be classified as risky. But a company faced with such a problem has complications and obstacles in doing business, its counterparties are not given a tax credit, business relations weaken, and losses grow. The administrative way of solving the problem, which consists in providing explanations to the authorized representatives of the fiscal body, does not always work. Therefore, you have to go to court and defend your rights. As evidenced by numerous examples from practice, it is difficult for clients to do this on their own, some had to make many unsuccessful attempts, and in the end - to turn to lawyers anyway.

Procedure and conditions of application

The right to a court appeal against the blocking of invoices directly follows from Art. 5 KASU (Code of Ukraine on Administrative Proceedings). Thus, in the legal norm, which this article enshrines, it is stated that every person has the right to appeal to an administrative court in accordance with the procedure prescribed by law in cases where, in his opinion, the actions or inaction of a subject of authority violate his rights. In addition, paragraphs 17.1.7 of the Tax Code of Ukraine specifies that a taxpayer may, in accordance with the procedure established by the Code, appeal the decisions, actions, or inaction of controlling bodies.

How does the court process work?

There are several stages in which the legal process takes place. Everything moves in the following sequence:

• A lawsuit is filed first. This is followed by the opening of proceedings.
• At the next stage, preparatory proceedings take place. Here it is possible to settle the dispute through the mediation of a judge. It may end with reconciliation of the parties. But in the context of this topic, such a scenario is only theoretical. As our long-term practice shows, only an appropriate court decision becomes an argument for tax officials.
• So, the case is considered on its merits, and its consideration ends with the pronouncement of a court decision.

It is also possible to review the court decision in the appellate proceedings and further challenge the appeal.

What you get at the final stage?

The acquisition of legal force by a court decision is provided for in Art. 254 KASU. The decision or resolution of the court of the first instance takes legal effect after the period provided for filing an appeal has expired (if no appeal has been filed). It is important to note that the further course of the situation depends on the actions of the tax officials themselves. For example, if they do not implement the decision, the mechanism of judicial control over its implementation can be applied.

At the same time, it is worth mentioning that the specialists of the "Prikhodko&Partners" law office always work for results. Therefore, we offer a whole range of services in the framework of supporting such cases until the invoices are really unlocked. We do not stop halfway and work to ensure that the client company can resume its business activities and not suffer new losses as a result of abuses by tax officials.

Inquiries related to tax law are our key specialism. Therefore, we will help you qualitatively. To calculate the cost of assistance in unblocking tax invoices - fill out the form on our website and our lawyer will call you to clarify information on your issue and offer solutions.