Appealing a decision of tax authorities: the importance of the procedure

Appealing tax authority decisions is a legally regulated procedure for protecting taxpayers’ rights. The Tax Code of Ukraine allows challenging any decision of the controlling authority. This procedure restores justice in the event of unlawful accrual of obligations or fines.

Deadlines for appealing the decision of the tax inspection

Compliance with deadlines is critical for a positive outcome. In the administrative procedure, the appeal of a tax notification-decision occurs within 10 working days after receipt. For a judicial appeal, 6 months are provided, and after the administrative procedure – 1 month.

The procedure for appealing a tax inspection decision

The legislation provides for two ways to appeal a tax decision:

  • administrative (pre-trial);
  • judicial.

The first involves filing a complaint with a higher tax authority. A judicial appeal is made by filing an administrative claim, in which case the taxpayer loses the right to an administrative appeal.

What decisions of the fiscal authority can be appealed?

The taxpayer has the right to appeal any decision, including:

  • tax notifications-decisions;
  • orders on inspections; 
  • decisions on refusal to register a tax invoice, on cancelation of registrations or on imposition of administrative arrest.

Tax consultations and actions of officials are also subject to appeal.

State Tax Service decisions that provide for negative financial consequences

Tax notification-decisions are the main type of decisions with financial consequences. There are 17 approved forms of tax notification-decisions. The most common forms are “Р” (increase in tax liabilities), “Ш” (fines) and “В” (refusal to refund VAT).

Preparing a complaint

When filing a complaint, you must:

  • clearly formulate claims;
  • indicate the violated norms of legislation;
  • attach supporting documents.

A quality complaint significantly increases the chances of a positive decision.

How to choose an appeal method

The choice of method depends on the circumstances of the case. Administrative appeal postpones payment of obligations and does not require a court fee. Judicial appeal is effective if there are legal grounds and positive practice. The optimal procedure for appealing decisions of tax authorities is first administrative, then judicial.

What is the deadline for appealing the decision of the State Tax Service?

The deadline for tax notification-decision in an administrative manner is 10 working days (for forms “МПЗФ” and “Ф” – 30 calendar days). For objections to the inspection act – 10 working days from the day following receipt of the act.

Filing a complaint with a higher tax authority

The complaint is filed through the authority that made the contested decision. At the same time, the taxpayer is obliged to notify this authority. Timely filing stops the fulfillment of monetary obligations until the end of the appeal procedure.

Consideration of the complaint

The superior tax authority considers the complaint within 20 calendar days, often extending the period by 60 days. The burden of proof lies with the tax authorities. Based on the results, the authority may leave the decision unchanged, cancel it or change it.

Obtaining a decision on a complaint

After receiving the decision, the taxpayer may agree with it or appeal it in court within 1 month. If the decision is positive, the tax authority must implement it.

Appealing a tax authority’s decision in court

A judicial appeal against a tax authority’s decision begins with filing an administrative claim. It is filed with the administrative court at the location of the tax authority. This allows new evidence to be presented.

Peculiarities of appealing the results of tax inspections

The key feature of appealing the results of tax inspections is the taxpayer’s right to file objections to the inspection act before issuing a tax notice-decision.

It is important to carefully analyze the auditors’ findings and collect evidence to support your position. Involving experts increases your chances of success.

Appealing the act of on-site tax inspection

Act of inspection records the identified violations. Appeals are made before a decision is made by filing objections within 10 working days. It is necessary to justify disagreement with each point of the act and attach supporting documents. 

What are the ways to appeal a decision of tax authorities of Ukraine? 

There are different methods.

Administrative procedure

This method of appealing a decision of the tax authorities involves filing a complaint with a higher tax authority with the burden of proof on the tax authority.

Judicial procedure

It involves appealing to the courts within 1095 days from the date of receipt of the decision. The main advantage of judicial appeal is the independence of the court from the tax authority system.

Leave a request for a lawyer consultation

To avoid typical mistakes, it is recommended to contact professional lawyers, which increases the chances of a positive outcome. An initial consultation often allows you to assess the prospects of the case and choose the optimal defense strategy.

Frequently asked questions

Is it possible to challenge the tax service’s decision?

Yes, any decision can be appealed administratively or judicially, subject to the deadlines and procedure.

What should I do if I do not agree with the tax inspection act?

An objection must be filed within 10 working days, providing detailed reasons for disagreement and attaching supporting documents.

How to properly file an appeal to the tax authorities?

The complaint is submitted through the authority that made the decision to a higher authority with a clear statement of the claims and references to legislation.