According to the State Fiscal Service of Ukraine, during 2017 the audit divisions of SFS charged additional assessments of monetary obligations in the amount of UAH 26600000000, provided coordination of UAH 16400000000, including UAH 5400000000 of income tax and UAH 4300000000 of value added tax. In 2018, additional UAH 13.2 billion were charged. According to the tax authorities, the main violation of the verified taxpayers was the overstatement of the tax credit and expenses due to their formation on transactions with “doubtful” business entities.
Doubtful / fictitious counter parties, unrealistic business transactions has been the main reason for the additional charge of monetary liabilities from value added tax and income tax.
Viktoria Kovalchuk, partner of ESQUIRES law firm, held a master class on preparing a statement of claim and selection of the evidence basis(based on a practical case and analysis of the certificate of inspection) for students of the module “Reality of Transactions and Evidence Base”of Legal High School.
After amendment of the procedural law, it is the preparation of the claim and the evidence base that is a key step in the judicial appeal procedure for tax assessment notice, since the taxpayer must submit all available evidence of reality of the transaction as well as to fill the statement of claim.
In the process of proving the reality of a business transaction for a taxpayer, it is necessary to use all available opportunities. This includes the recording of the process and the result of a business transaction (photo, video), information about the use of the result of a business transactions in future activities, etc. The procedural law clearly regulates issues of ownership and acceptability of evidences.
At the same time, what will become the source for the evidence base on unrealistic business transactions in the tax authority, you can determine in the Methodological recommendations for recording in the inspection certificate of the results of processing of unrealized business transactions with goods documented by taxpayers.
The statement of claim draft (for educational purposes only) is available here.