Cancellation of tax decisions for LLC 'BKG'

Case context

Case No. 826/16217/18. The State Tax Service in Kyiv issued two tax notices-decisions to LLC "BKG": UAH 431,150 in additional assessments on income tax and UAH 488,313 in VAT. The total amount of claims is over UAH 919,000. The grounds: allegedly fictitious business transactions with LLC "Zhytlobudmontazh" and LLC "Apextrade LTD".

Strategy

Lawyer Ksenia Ovsyannikova filed an administrative lawsuit and focused on the evidentiary basis of the reality of the transactions: (1) a full package of primary documents was collected - contracts, certificates of work performed, payment orders, visit logs and passes to construction sites; (2) it was confirmed that both counterparties were valid VAT payers at the time of the transactions; (3) an emphasis was placed on the key principle: liability for the supplier's violation cannot be automatically transferred to the buyer.

Process progress

The District Administrative Court of Kyiv established: the transactions are real, confirmed by primary documents, the State Fiscal Service did not provide any evidence of the client's awareness of possible violations by counterparties. Both PPRs were canceled.

Experience the Power of Effective Results

The SFS's PPR for UAH 431,150 and UAH 488,313 - a total of over UAH 919,000 - were completely canceled. The decision was upheld by the appeal court (for details, see the appeal case).