ARZINGER successfully defended one of the largest producers of fat and oil products in a tax dispute over a non-resident's passive

ARZINGER successfully defended an international company, one of the largest producers of oil and fat products, in a complex and lengthy dispute over the taxation of non-resident's passive income.

The client paid interest on loans to a resident of the Republic of Cyprus and applied a reduced withholding tax rate. In turn, the Ukrainian tax authorities, having received responses from the competent authorities of the Republic of Cyprus and the Republic of Austria, concluded that the counterparty was not the beneficial owner of the income. Accordingly, the client was charged additional tax in the amount of over UAH 25 million.

Thanks to the developed and effectively implemented defence strategy, ARZINGER managed to prove that the non-resident was the beneficial owner of the income received from the client and succeeded in cancelling the tax surcharges.

The project was handled by associate Iryna Rokishchuk and partner, attorney-at-law Nikita Larionov. The project was supervised by founding partner Sergii Shkliar.