Attorney
An expert in the practice of tax law, specializes in the protection of rights in court, corporate law.
Exclusion of an enterprise from risky
Obtaining the status of a risky taxpayer is a serious blow to a business, as it actually stops its activities due to the blocking of tax invoices. The main reason is the desire of tax authorities to prevent fictitious transactions and minimize taxes. The State Tax Service uses automated systems that analyze each transaction and reporting. When a company’s activities are suspicious, the system automatically sends a signal for verification. If your company is on the list of risky ones, it’s time to contact professional lawyers who will help solve this problem. Such specialists work at the law firm “Prikhodko&Partners”.
Why does the company get on the list of risky companies?
Businesses find themselves at risk suddenly, without even suspecting that there are problems. Taxpayers can make such a decision based on an analysis of the supply chain, when one of the previous sellers in the system turned out to be unscrupulous. The lack of sufficient material and technical base or a minimum number of employees is also a reason.
Taxpayer risk criteria
Official rules clearly define the specific signs by which a company falls into the list of risky ones. Basic criteria are approved at the government level and are applied during monitoring. Some points concern registering a company under fictitious persons, forging documents, or registering a company without the intention of conducting business activities.
However, the most popular is the clause stating that the regulatory authority has tax information indicating signs of risky operations. This vague wording allows any action by the company to be interpreted as a violation. These include:
- a sharp change in the nomenclature of goods;
- purchasing from contractors with a negative reputation;
- lack of warehouses for large volumes of products;
- low tax burden.
Often, the status of risky enterprises is given to companies whose management conducts business in good faith.
How to get rid of the status of a risky VAT payer?
This process requires thoughtful action from management, accountants, and lawyers. The first step is to determine the specific reason that led to the fiscal authority’s decision.
The payer has the legal right to submit detailed explanations and a package of documents refuting suspicions through the electronic account. Documentary confirmation is the main weapon of business, so its formation should be approached responsibly. It is necessary to provide:
- contracts with suppliers;
- primary documents;
- acceptance and delivery certificates;
- bank statements.
It is also worth providing evidence of the real ability to fulfill obligations, in particular lease agreements for offices, warehouses, or equipment.
Appealing the decision on compliance with risk criteria
If the regional commission of the State Tax Service refuses to remove the risky status from the enterprise, the business has the right to proceed to the appeal procedure. There are two ways to resolve this conflict, namely administrative and judicial. The administrative option involves filing a complaint with a higher authority, that is, the State Tax Service of Ukraine, with a detailed description of the violations on its part. However, this method rarely brings the desired result.
Therefore, the most effective tool for protecting rights remains an appeal to the administrative court. The legal process takes a lot of time, but it is the court that most often takes the side of honest business. A positive court decision is mandatory for tax authorities to implement.
Advantages of cooperation with “Prikhodko&Partners”
Independent struggle with the tax system often ends in defeat due to lack of legal knowledge and experience in interacting with the fiscal authority. The professional team of the law firm “Prikhodko&Partners” offers businesses qualified support and a comprehensive approach to resolving disputes.
The main advantage of cooperation lies in a deep understanding of the internal mechanisms of the State Tax Service and current judicial practice. The company’s lawyers analyze the financial and economic activities of each client, finding weaknesses in the arguments of tax authorities.
Specialists help to correctly form the evidence base, avoiding common mistakes when preparing explanations. Clients receive a real result in the form of the restoration of the enterprise’s work.
| Legal support stage | What does the service include? |
|---|---|
| Initial situation analysis | Studying the tax authority’s decision on the company’s compliance with risk criteria and assessing the prospects for exclusion from the list. |
| Analysis of the company’s activities | Verification of business transactions, primary documents, counterparties, and tax history. |
| Determining the causes of risk | Establishing the reasons why the company was included in the list of risky VAT payers. |
| Preparation of a package of documents | Formation of explanations, contracts, acts, invoices, payment documents and other evidence of the reality of economic activity. |
| Submission of explanations to the State Tax Service | Preparation and submission of a notification with a full package of documents to exclude the enterprise from the list of risky ones. |
| Communication with tax authorities | Support in interaction with the State Tax Service, provision of additional explanations and documents upon request. |
| Appealing the decision of the State Tax Service | Preparation of an administrative complaint in case of refusal to exclude an enterprise from the list of risky ones. |
| Legal representation | Preparation of a lawsuit and representation of the interests of the enterprise in the administrative court. |
| Unblocking tax invoices | Support for the procedure for registering blocked tax invoices after the company is removed from the list of risky ones. |
| Tax risk audit | Providing recommendations on eliminating risk factors and preventing the company from being re-included in the list of risky ones. |
Lawyer’s assistance in appealing the status of a risky enterprise
The participation of a qualified lawyer in the process of removing a company from the risky category is the key to successfully overcoming the crisis situation. A professional tax lawyer conducts a full legal audit of the decisions of the regulatory authority, identifies violations and develops a strategy of action.
The lawyer takes on the entire range of work, from preparing objections to the commission’s decision to representing the client’s interests in court hearings. The professional knows which documents are of crucial importance to judges, which allows speeding up the consideration of the case.
Do you need a lawyer’s help in your specific situation? Fill out the feedback form right now. Our specialist will contact you as soon as possible and offer an effective legal solution that will meet your needs and the circumstances of the case.
Calculate the cost of services
1 question
Have you received a decision on compliance with the VAT payer risk criteria?
2 question
Have you already submitted an explanation for removing the risk status?
3 question
Have you received a decision on compliance with the risk criteria under clause 8?
4 question
Do you have tax invoices suspended in the registration?
What does risky taxpayer status mean?
This is a status assigned to a company by the tax authority if risk criteria are met. It can lead to the blocking of tax invoice registration.
How long does the procedure for exclusion from the list of high-risk individuals take?
The deadline depends on the circumstances of the case, the completeness of the submitted documents, and the results of their consideration by the tax authority.
What to do if the State Tax Service repeatedly refuses to exclude?
In such a case, the decision of the tax authority may be appealed administratively or in court.
Can a company be re-listed as a risky company?
Yes. If, after exclusion, the enterprise again meets the risk criteria or the tax authority identifies new risky transactions, it may be re-included in the list of risky VAT payers. To minimize such risk, it is important to eliminate the reasons for the previous inclusion and properly document business activities.
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