Olesia Bilozor
Managing partner, attorney

LEGAL ENTITY RISK

SITUATION

By the decision of General Directorate of the State Tax Service Commission, it was decided that the Client, as a VAT payer, met the taxpayer risk criteria, as a result of which absolutely all tax invoices of this Client were blocked in the Unified Register of Tax Invoices, which caused negative consequences in cooperation with counterparties.

DECISION

After getting acquainted in detail with the Client’s activities and finding no risk signs, defined by law, the attorney filed a statement of claim with the administrative court, which agreed with the plaintiff’s legal position and recognized the the decision of the State Tax Service General Directorate Commission as not meeting the requirements of the legislation and adopted without any verification available from the controlling tax information authority.

RESULT

The attorney’s legal position was the basis for the administrative court decision and became the reason for the exclusion of the Company from the List of VAT payers who have risk signs, which completely restored its successful operation.