Local Attorneys Gather To Discuss Tax Dispute Litigation In Ukrainian Administrative Courts

On May 28, 2010, Premier Palace Hotel hosted a Round Table entitled “Discussing Tax Dispute Litigation at Ukrainian Administrative Courts” held by the Kyiv Office of the Ukrainian Bar Association headed by Valentyn Hvozdii, Attorney, Member of the Public Collegium under the State Tax Administration of Ukraine.

The event was raised a lot interest and proved to be a success according to its participants. Well-known specialists in Ukrainian tax law, such as Dmytro Mikhailenko (Partner with Orlov, Mikhailenko & Partners Law Firm), Ihor Slynko (Attorney, Colonel with Tax Police), and Andriy Stelmashchuk (Attorney with Vasil Kisil & Partners Law Firm) shared their opinions during the event .

The participants analyzed in details the last practice of the Higher Administrative Court of Ukraine (HACU) related to tax dispute proceedings, in particular, in cases regarding: 1) selling promissory notes not issued by an emitter to pay for acquired goods (services), with the VAT being not imposed thereon; however, there is no VAT refund for such goods (services) purchased; 2) using regular prices in charging the VAT: cases when regular prices are used, applying a 20% margin. It was stated that the customs value of imported goods is not sufficient to substantiate regular prices; prices for goods purchased inside Ukraine are not adequate indices either; 3) export related services: the HACU has finally acknowledged that the zero rate may apply not only to exporters; in this regard, the HACU has formulated the terms to use VAT privileges; 4) resolving disputes with companies bearing features of sham, as well other relevant topics.

In his much anticipated presentation Mr. Stelmashchuk proposed to discuss the topic “Tax Disputes Involving Tax Authorities: Where Do Tax Payers’ Rights Stop and Customs Officers’ Obligations Begin”. Andriy V. Stelmashchuk used a specific litigation case from Vasil Kisil & Partners practice as an example to demonstrate practical legal aspects of this type of conflicts.

Attorney V. Hvozdii acted as event moderator and facilitated lively discussion among attendees, during which attorneys shared their own tax dispute resolution case studies.