Defending the interests of our client – a peasant farm

From May to October 2022 we defended the interests of our client, the farm, in the administrative court on the issue of appealing the in-house control notification as well as the decision of the tax authority not to accept the explanation of the notification, which was filed in full accordance with Article 96 of the TC.

The essence of the dispute was whether the taxpayer has the right to stand on the VAT accounting, while applying at the same time the VAT, as well as to what extent the tax authority has the right to demand from the taxpayer to provide any documents or perform any actions within the notification.

In the courts, the cornerstone was the question of whether the taxpayer in the execution of notification of desk control should perform actions other than those specified in Article 96 of the Tax Code, or providing an explanation is an exhaustive action.

As a result, the courts of the first and appellate instances legally and reasonably sided with the taxpayer and confirmed the illegality of the tax authority in refusing to accept an explanation on a tax notice.