Result: no claims by the state revenue department against our client.
Our clients received a notice of foreclosure of money in debtors’ bank accounts (the “Notice”). In the Notice, the State Revenue Department stated that the debtor (our company’s client) must submit the reconciliation acts between the debtor and the taxpayer within twenty working days, otherwise the company’s accounts will be seized and/or the amount will be forcibly collected.
A complaint was filed against the Notice with a higher authority, but the higher authority considered the Notice of the State Revenue Department to be lawful, and denied the complaint.
An administrative lawsuit was filed against the Notice in the Specialized Interdistrict Administrative Court.
During the trial, it was found that the receivable was established on the basis of the Taxpayer’s Tax Audit Act. The trial dragged on for more than 6 months, as a result of which the Notification of the State Revenue Department was declared illegal and the actions of the state body unreasonable. Moreover, due to the gross violations, private court rulings were issued against some employees of state bodies.
Result: absence of any claims from the State Revenue Department to our client.
Senior Partner
