Cassation Court confirmed legality of issued tax notifications-decisions for 174.08 million UAHChapter: News

Administrative Cassation Court within the Supreme Court upheld position of Central interregional directorate of the STS for work with large taxpayers and detected that the Joint-stock company “State Food and Grain Corporation of Ukraine” illegally included amount of the value added tax on relations with counterparties in the value added tax credit.

The Court took into account argumentations of the controlling body that according to the collected tax information there is no evidence of material and technical base of the plaintiff’s counterparties necessary for the disputed business operations, specifically the presence of: vehicles (rolling stock), contracts with carriers, skilled workers and granaries.

Cassation Court pointed out validity of conclusion of the controlling body on the non-confirmation of receipt of goods in a supply chain and storage of grain, the lack of real origin source of crops, subsequently sold to the plaintiff and actual implementation of transportation services.

Herewith, it is noted that argumentations of the JSC “State Food and Grain Corporation of Ukraine” that independently available tax invoices in the case file are sufficient evidence of the relevant operations and cannot indicate that the courts of first and appellate instance incorrectly applied substantive law and violated rules of procedural law.

Administrative Cassation Court within the Supreme Court summarized that in the course of this case, the courts of previous instances found that amount of information provided by the plaintiff does not allow to form conclusions that the relevant services and goods were actually purchased and supplied for use in the plaintiff’s economic activities or used in business activities.

Administrative Cassation Court of the Supreme Court as of 31.03.2021 in case № 826/3842/17 made a decision to dismiss the cassation appeal of the JSC “State Food and Grain Corporation of Ukraine” and to leave unchanged the appealed decisions of the courts of first and appellate instances.

As follows, the Administrative Cassation Court confirmed validity of conclusions of the controlling body set out in the audit report and legality of issued tax notifications-decisions in the total amount of 174.08 million UAH.

 

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