Every tax inspection conducted by the authorities is aimed at identifying tax violations within a business. Trends indicate that inspection bodies often find violations where none exist. After receiving the relevant tax notifications and decisions (PPR), entities may be unsure about how to properly appeal them.
The Tax Code of Ukraine (hereinafter – the TC of Ukraine) provides us with two possible methods for challenging tax decisions: the first is through a higher authority (administrative procedure), and the second is directly in court.
First Method.
You can submit a written complaint along with supporting evidence to the higher authority within 10 days from the date of receipt of the PPR. If you miss this deadline for valid reasons, the law allows you six months to appeal the PPR, but you must prove the validity of the reasons for missing the 10-day deadline. In both the administrative and judicial procedures, the burden of proof lies with the tax inspection. After receiving your complaint, the higher authority must send you a reasoned response within 20 days; this period may be extended, but not beyond 60 days. The consideration of the complaint suspends your obligation to fulfill the monetary obligation. If no response is received from the higher authority within the specified period, the complaint is deemed fully satisfied. A decision that is not in your favor does not deprive you of the right to appeal it in court.
Second Method.
You can prepare an administrative claim and send it to the district administrative court located either in your jurisdiction or in the location of the tax authority. The timeframe for such a submission is set at 1,095 days. The judicial method of appealing the PPR is generally more effective compared to the administrative one, as there is limited practice of higher authorities overturning decisions.
To properly draft an administrative claim and subsequently appeal the PPR in court, it is advisable to seek assistance from attorneys.