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30 June 2005

Legal Alliance Company is a legal advisor for Eupatoriya trade seaport for several years

Company's lawyers once again successfully defended our client's interests before the court.

Tax inspection categorized Eupatoriya trade seaport transactions on bunkering foreign ships with fresh water as supply of water, not providing services on delivery and bunkering. According to the provisions of the Law of Ukraine "On VAT" a supply is a subject to taxation at 20 percent rate. This also meant that our client had to pass through the proper customs formalities.

Anatoliy Menshikov, Legal Alliance Company's partner and head of Tax and Antitrust Law Department, proved before the panel of judges of Supreme Arbitrate Court of Ukraine that the a.m. transactions should be considered as services on delivery of fresh water and bunkering foreign ships with fresh water, not a supply. These services according to legal regulations are subject to taxation at zero rate.


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