KPMG Law Ukraine won tax dispute related to penalties applied through tax authorities’ mistake

KPMG Law Ukraine represented client in tax dispute related to penalties applied through the tax authorities’ mistake made while loading information to taxpayer account.

 At administrative appeal stage, tax dispute resolution experts of KPMG Law Ukraine could prove that the company met the deadline for payment of agreed amount of corporate income tax liabilities and could not be held liable for improper performance of duties by tax authorities with regard to loading information to the taxpayer account.

 Upon consideration of the appeal, the State Tax Service, based on the Supreme Court’s practice, confirmed that penalties applied to the taxpayer under Article 126 of the Tax Code of Ukraine, are generally applied for failure to pay the agreed amount under liability. Due to the fact that there was no actual failure to pay the agreed amounts of CIT that could have been subject to such penalties, STS cancelled the disputed tax notice-decision.

 The engagement was led by Kostiantyn Karpushyn, partner, head of Transfer Pricing and Tax Dispute Resolution Group, and performed by Larysa Antoshchuk, attorney, head of the Tax Dispute Resolution Practice, and Iryna Khyliak, senior consultant.