Administrative appeal of decisions of tax authorities

In Ukraine, there two ways to appeal decisions of tax authorities: judicial and administrative. The judicial appeal procedure provides for complaining to the administrative court; the administrative appeal procedure provides for complaining to superior bodies. In this article we will tell you just about the administrative appeal procedure, in the light of the latest amendments to the Order of the Ministry of Finance of Ukraine dd. 21.10.2015 No.916 (upon procedure for executing and lodging complaints by tax-payers).

A complaint is lodged to a superior controlling body in writing within 10 calendar days from the date of a taxpayer receiving a disputed decision of a controlling body. In case appeal applies to a local body’s decision, a complaint is to be lodged to a regional controlling body. If a taxpayer is not satisfied with the appeal consideration results, then they can, within 10 days, direct the complaint to the central controlling body. We do not produce concrete names here, because changes in the structure and names of controlling bodies occur, unfortunately, quite often.

Please pay attention to the fact that simultaneously with lodging an appeal, it is necessary to report this to a tax body whose decision you are appealing, lest the decision should come into force and a fine should be imposed upon additional tax charges etc. From the other hand, you can safely pay the additional tax charges, because, in case of abolition of the decision, you will receive back the tax overpayment amount. But if the decision remains in force, you will avoid paying penalties.

As per the law, a complaint shall be considered within 20 days, but in some cases this period may be extended up to 60 days. If a taxpayer receives no reply (resolution) within 20 days, this means that the complaint is fully granted as from the next day following this period’s last day. Head of a controlling body or deputy head has the right to extend the complaint consideration period up to 60 days, but the taxpayer must be informed of that within 20 days.

One of the latest innovations is that a complainant can be represented by an attorney!

Besides, a complainant (or its attorney) has the right to familiarize itself with inspection materials and duplicate them; carry out technical recording (audio- and video-recording etc.) of a complaint handling; enter a motion for the persons, who conducted inspection or took part in making the disputed decision, to participate and give explanations. Representatives of the mass media (in case of a public hearing) may be also present during examination of the complaint materials.

Despite some simplification of the procedure for appealing decisions of tax authorities, the procedure itself has a lot of hidden rocks and is just ineffective in many cases. Should you consider a decision of tax authorities unjustified, contact Invicta’s attorneys and we will help you to determine its legality, as well as choose the best method of defense! Looking forward to your addressing us by the contact details specified on the website!