Within the scope of a tax dispute, KPMG Law Ukraine’s tax dispute resolution experts disproved the arguments of the appeal claim filed by an Tax Authority according to which the Company had to recognize income from discounting its payables and to amortize the discount as of each following balance sheet date
The Court of Appeal disproved the conclusions set forth in the appeal claim filed by an Tax Authority and supported the arguments of KPMG Law Ukraine, since the National Accounting Standards do not oblige the taxpayer to keep its accounting records in compliance with Ukrainian NAS to discount its payables, all the more that methodology of such discounting does not exist. With the scope of consideration of the appeal claim, judicial panel left into force the decision of the first instance court and did not satisfy Tax Authority’s appeal claim. Furthermore, the court fully satisfied the claim of the taxpayer to reimburse the costs of the professional legal assistance.
The project was implemented under the leadership of Konstantin Karpushin, partner, head of transfer pricing and tax disputes resolution group, and Larysa Antoshchuk, attorney-at-law, head of tax dispute resolution practice. KPMG Law Ukraine lawyers Nataliia Musiienko, Yurii Oliinyk, Sofia Baranovska and Artur Horholiuk also contributed to the project.