Victory in a Tax Dispute for 242 million UAH
The client, a major company specializing in import and export of products from Ukraine, faced a tax dispute when the tax authorities denied reimbursement of VAT the company had paid. The tax authorities argued that the products, which incurred VAT during import or purchase from local suppliers, had been destroyed in missile strikes.
An internal audit conducted by the company revealed an overestimation of VAT liabilities. The company made adjustments in line with the Tax Code and supporting accounting documentation. However, the tax authorities were not satisfied and imposed additional tax liabilities.
The LA Law Firm team initiated the case with an administrative appeal, developing a legal position to counter the tax authority’s claims. A key element of their argument involved refuting the tax authority's claim regarding the destruction of products by conducting a thorough inventory review. Additionally, the tax authorities had exceeded their legal mandate during the audit, investigating transactions outside their jurisdiction.
This precise approach enabled the LA's lawyers to successfully challenge the tax authority's actions and compel a re-audit. During the second audit, the tax authorities reviewed all the documentation and agreed with the lawyers' position confirming that the client had not violated tax regulations. This outcome led to the reimbursement of VAT and rectification of the imposed liabilities.
Thus, LA Law Firm successfully defended the interests of a major Ukrainian manufacturer in the tax dispute, ensuring the client's operations and production activities continued without disruption.
"This win is not only pivotal for our client, but also for the industry as a whole. We are pleased to have supported the company in maintaining its capacity to invest in growth despite this challenging period in history. As a professional, I am particularly interested in how the consequences of military actions directly influence the tactics of parties in disputes," Vitalii Savchuk stated.
The project was led by partner Vitalii Savchuk, along with senior associate Yaroslav Furiaka and associate Oleksandr Tsurkan.
