HOW TO UNLOCK TAX INVOICES – CASE FROM UK “PRIKHODKO&PARTNERS”

TAX INVOICES FOR 12 MILLION VAT WAS UNLOCKED AND THE DECISION ON COMPLIANCE WITH THE RISK CRITERIA WAS APPEALED

LLC "IBERIS LTD" turned to our company for legal assistance in unblocking tax invoices and removing the enterprise from the risk list.

The latter received 153 decisions on refusal to register tax invoices for a total amount of about 12 million VAT. In addition, the company tried unsuccessfully for a long time to get rid of the risky status, but received a negative response from the tax service three times.

In view of the clear illegality of the decisions of the tax service in the specified situation, it was decided to go to court.

The administrative lawsuit, among other things, was based on the fact that the contested decision should contain a clear reason for refusing to register a tax invoice, indicating, in particular, which documents were not provided by the taxpayer, which would be sufficient for the commission to make a decision on the registration of the tax invoice, in particular , regarding supply/purchase of goods/services, storage and transportation, etc.

It was emphasized that the control body's designation of specific documents that must be submitted by the taxpayer in order to confirm the sufficiency of the grounds for registering tax invoices makes it impossible for the taxpayer to exercise the right to provide substantiated explanations and the necessary primary documents.

The District Administrative Court of Kyiv opened the proceedings in case 640/12095/22 by decision of 09/08/2022. At the same time, taking into account the fact that LLC "IBERIS LTD" had been on the list of risky taxpayers for a long time and did not carry out activities, we managed to free the Claimant from paying the court fee, which amounted to UAH 379,593.00. In addition, the missed procedural deadline for part of the claims was extended to the company.

Understanding that the possibility of carrying out economic activity by the Claimant depends on the results of the court's consideration of the case, and taking into account the fact that joint consideration of the requirements for appealing decisions on refusal to register a number of tax invoices for 9 months and decisions on the compliance of the claimant with risk criteria will significantly slow down the resolution of the case as a whole, it was the claims were separated by separating the claims for recognition as illegal and canceling the decisions on compliance of the value added tax payer with the criteria of riskiness in independent proceedings № 640/17072/22.

We managed to prove that the contested decisions do not contain any motivation of the grounds and reasons for classifying the company as risky taxpayers in accordance with clause 8 of the Taxpayer's Riskiness Criteria and do not contain evidence of the existence of tax information that indicates the presence of signs of risky transactions by the taxpayer with references to relevant documents .

Thus, by the court decisions of November 2, 2022, in cases 640/12097/22 and 640/17072/22, the administrative claims filed in the interests of IBERIS LTD LLC were satisfied in full.

At the same time, in order to prevent the loss of relevance of the court decision and the process of restoring the violated right, we managed to obtain court decisions in less than 2 months from the moment the proceedings were opened.

REFERENCE TO THE REGISTER OF COURT DECISIONS

REFERENCE TO THE REGISTER OF COURT DECISIONS