Did you receive a tax violation notification letter after an audit? Did the Commission suspend the registration of tax invoices? Included in the list of risky ones? We have been working with such cases every day for the past 10 years, and we know how the State Tax Service justifies its decisions and where the typical weaknesses in their arguments lie.
Fedoryshyn & Partners specializes in tax and customs law. Our practice is built on two principles: deep specialization and focus on a specific result for the client – not on the number of consultations provided, but on solving the problem.
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From the practice of Fedoryshyn & Partners
Over the years, we have handled hundreds of cases in tax disputes of various sizes – from appealing against fines for individual entrepreneurs to multi-million dollar tax violation notices for large taxpayers. Below are some examples.
Appeal against a tax violation notice for UAH 7.9 million – audit of the Office of Large Taxpayers
The Office of Large Taxpayers of the State Tax Service conducted a scheduled on-site inspection of a manufacturing company. As a result, an act was drawn up, which recorded the understatement of income tax and VAT. Based on the report, three tax violation notices were issued totaling UAH 7.9 million.
We analyzed the act and found that the STS’s conclusions were based on formal discrepancies in the primary documents, while the reality of the business transactions was confirmed by a full chain of documents – from contracts to acceptance certificates and bank statements. A lawsuit was prepared to the administrative court.
Result: all three tax violation notices were recognized as unlawful and canceled.
Appealing against a tax assessment notice on income tax: importer, foreign economic operations
The State Tax Service conducted a documentary scheduled audit of a company that carries out a full production cycle and purchases packaging from a counterparty in Turkey. The tax authority decided that the costs of prepress and typographic equipment setup were “not economically justified” and charged UAH 234 thousand in additional income tax.
At the stage of administrative appeal, the STS partially canceled the TND, recognizing the insufficiency of the evidence base for a number of counterparties. As for the rest, we prepared a lawsuit in which we proved that prepress costs are an integral part of the production cycle and are confirmed by contracts, acts and bank documents.
Result: The tax violation notice was canceled in full.
Appeal against a fine of UAH 23.7 million: actual inspection of the store
During the actual inspection of the store, the STS conducted a controlling settlement transaction and found that the entrepreneur allegedly did not keep records of inventory. The reason was the sale of sunglasses, which the tax authority classified as “medical devices”. On this basis, a tax violation notification letter was issued with a fine of UAH 23.7 million.
We appealed the decision, building our arguments on several levels: sunglasses are not a medical device within the meaning of the relevant legislation; the entrepreneur is not included in the list of entities required to keep commodity records; the inspection was beyond the scope of factual inspection; the grounds for its appointment were not proven.
Result: The court declared the tax violation notification letter unlawful and canceled it in its entirety.
Unlocking 8 tax invoices for an importer of industrial equipment
The Commission for Suspension of Registration suspended the registration of 8 tax invoices and adjustment calculations of a company that imports ventilation equipment from a German manufacturer and supplies it to Ukrainian buyers. The reason was that the UKTZED codes of the goods were missing from the VAT payer’s data table.
For each invoice, a separate package of explanations was prepared with complete primary documentation: a foreign economic contract, customs declarations, contracts with buyers, and invoices. After the commission’s refusal, a lawsuit was filed to recognize the decisions as unlawful and to oblige them to register the invoices.
Result: All 8 invoices were registered by court order.
Appeal against 11 decisions of the State Tax Service in the amount of more than UAH 1 million: unscheduled inspection of individual entrepreneurs
The STS conducted a documentary unscheduled audit of an individual entrepreneur after he had ceased his business activities. As a result, 11 decisions were issued – tax violation notices, debt payment requests and decisions on imposing fines – totaling more than UAH 1 million (personal income tax, VAT, unified social tax, military duty, penalties).
Підприємець дізналась про донарахування лише після відкриття виконавчого провадження – жодних повідомлень від ДПС вона не отримувала. Ми підготували позов, оскарживши всі 11 рішень, та обґрунтували порушення процедури повідомлення платника та неправомірність нарахувань.
Result: All 11 decisions of the State Tax Service were recognized as unlawful and canceled. The enforcement proceedings were closed.
Is your situation similar to one of the above?
Send us an inspection report, tax violation notice or commission decision – we will assess the prospects for appeal within 1-2 business days. It is free and does not oblige you to do anything.
Areas of practice in tax disputes
Appealing against tax assessment notices
TND is the main tool used by the State Tax Service to record additional charges. In-house, documentary, and factual audits – each may result in a tax violation notice with which you disagree. We analyze the tax audit report, prepare objections, go through an administrative appeal to the State Tax Service of Ukraine and, if necessary, conduct the case in court at all instances. We work with tax violation notices for income tax, VAT, personal income tax and unified social tax.
Suspension of registration of tax invoices
A blocked invoice is an unregistered tax credit for your buyer. A situation in which the counterparty does not receive a credit through your fault undermines trust and creates a risk of losing a partner for future deliveries. We prepare explanations and a full package of documents for the commission. If the commission refuses, we appeal in court. In our practice, in the vast majority of cases, registration can be restored – the question is at what stage.
Exclusion from the list of risky payers
Inclusion in the risky list means a de facto blockade of VAT work: every invoice will be stopped automatically. We prepare a table of the VAT payer’s data, appeal against the commission’s decision, and, if necessary, go to court.
Support of tax audits
The participation of a lawyer at the inspection stage is not a formality. We analyze the inspection order, monitor compliance with the procedure, record violations and prepare objections to the act. This significantly reduces the risk that the act will contain conclusions that will have to be challenged for months.
Tax debt, fines and claims of the State Tax Service
Tax claims, penalties, unified social tax charges, seizure of funds – all of these are appealable. If the State Tax Service has accrued a debt that you do not agree with or has imposed sanctions in violation of the procedure, there are grounds for defense.
When we don’t take a case
We do not take cases for the sake of process. If, after analyzing the documents, we see that the client’s position is objectively weak – for example, the reality of the transactions is not confirmed by documents, or the violation really took place – we say so directly. Sometimes the right strategy is not to appeal, but to negotiate an installment plan or minimize the consequences in other ways.
Our goal is the best possible result for the client, not litigation as an end in itself.
How to work
- Analysis of the situation. You send the documents in any convenient way. Within 1-2 business days, we study the materials and provide a preliminary assessment: prospects for appeal, optimal strategy, estimated timeframe and cost. This stage is free of charge.
- Making a decision. Based on the analysis, you decide whether we proceed. We communicate openly if we consider the position to be weak or if an appeal is inappropriate.
- Execution. Preparation of procedural documents, representation of interests in the State Tax Service and courts at all instances. We work throughout Ukraine through the Electronic Court.
- Feedback. At every stage, you are informed about the progress of the case. You always understand what is happening and what the next steps are.
About Fedoryshyn & Partners
Fedoryshyn & Partners specializes exclusively in tax and customs law. This is not just one of the areas of our broader practice – it is the only thing we do. More than 10 years of work in this area means that we know not only the legislation, but also the law enforcement practice: how the State Tax Service justifies its decisions, which arguments work in court and which do not.
Our clients include importers, manufacturing companies, IT businesses, large taxpayers and individual entrepreneurs. The geography of the practice covers the whole of Ukraine.
We assume that a client comes to us to solve a specific problem, not for a legal lecture. That’s why we speak in clear language: what are the risks, what can be done, what is the most likely scenario, and how much it will cost. Preliminary analysis of documents is free of charge.
Frequently asked questions
- What are the deadlines for appealing a tax violation notice?
Administrative appeal (complaint to the State Tax Service of Ukraine) – 10 business days from the date of receipt of the tax violation notification letter. Filing a complaint within this period suspends the fulfillment of monetary obligations for the duration of the review. Court appeal – 1 month after the administrative procedure is completed, or 6 months without it. As for certain categories of decisions, the Supreme Court case law allows for a period of 1095 days (Article 102 of the TCU), but this position is not uniform – you should not delay.
- Is an administrative appeal to a court mandatory?
No. You can go to court right away. At the same time, the administrative stage is free of charge, suspends the execution of the tax violation notice and allows you to see the arguments of the STS, which is useful for preparing for court.
- How much do the services cost?
The cost depends on the category of the dispute and the amount of additional charges. Preliminary analysis is free of charge. We agree on the exact price after reviewing the documents, before starting work.
- Is it possible to appeal a TND if it has already been paid?
Yes. Payment does not terminate the right to appeal. In case of cancellation, overpaid funds are subject to refund.
- Do you work only with large enterprises?
No, we don’t. We work with businesses of all sizes – from individual entrepreneurs to large taxpayers. The key criterion is the presence of grounds for appeal.
Time limits for appeal are limited
If you have received a tax violation notice, inspection report, decision to suspend registration or other document from the State Tax Service that you disagree with, send it for analysis. The preliminary assessment is free of charge.
Phone: +38 093 722 56 33
Email: fo@fedoryshyn.com
