Tax and Customs Disputes
Tax and Customs offices are the two pillars of the State’s fiscal policy.
Businesses mostly prefer not to litigate with them, as both offices have a lot of opportunities to cause problems to entrepreneurs who do not believe that court actions may be effective. Companies that dear to litigate with the tax or customs offices prefer to keep low profile on it.
TOP 10 TAX AND CUSTOMS DISPUTES:
- “Prohibition” to bring forward losses of previous periods;
- Legal relations with contractors: fictitious and on-paper-only transactions; discrepancies in the data base of the tax office regarding the results of automated comparison of tax liabilities and tax credit in the context of the taxpayer's contractors; business transactions with “fictitious” contractors and “tax holes.”;
- Recognition of certain classes of costs (consulting, management services, marketing, group expenses, services provided by non-residents, other costs “not related” to commercial activities) in the expenses;
- Cancellation of state registration of the taxpayer’s constitutive documents upon registration, i.e. post factum, as well as institution of criminal proceedings against officers of the taxpayer itself or of its contractors or of contractors of its contractors (second and third link in the “supply chain”);
- Issue of official tax rulings that are contrary to the law and violate the taxpayers’ rights;
- Recovery of VAT refund;
- A customs authority’s adoption of a tax notice on accrual of tax obligations alleging that the identified commodity nomenclature code is erroneous or the customs value of goods is incorrect or unfounded, in particular, with reference to the results of a desk audit;
- A department for nomenclature and classification of goods of a regional customs office decides to determine the goods code according to UKTVED and to use it for customs clearance;
- Refusal to accept a customs declaration, to carry out customs clearance and to let the goods and vehicles pass through the customs border of Ukraine with reference to the lack of documents submitted to prove the customs value of goods;
- Taxpayers’ claims for refund of the excessive duty paid due to incorrect determination of the commodity nomenclature code after customs clearance.
OUR COMPETITIVE ADVANTAGES:
- For all the complexity of the current tax and customs disputes, we win the cases for our clients and thus confirm that litigations with customs and tax authorities are possible and worthwhile;
- Today, due to instability and inconsistency of Ukrainian tax legislation, knowledge of case law is becoming essential for any taxpayer;
- We take an individual approach to each case the client refers to us;
- When taking up cases we consider the particulars of tax and customs areas, specifics of business, and opportunities for pre-trial settlement. We never involve our clients or potential clients in inappropriate litigations;
- Arzinger provides complex defence, including in criminal proceedings in the area of taxation, aiming at effective comprehensive solutions for the client with due regard to the possible problems with law enforcement agencies;
- The properly constructed tactics with the use of procedural mechanisms provided for by law predetermine in most cases the positive results for our clients.