Recently, business and tax authorities have been actively engaged in discussions on the proportionality of imposing huge fines for the late registration of tax invoices and adjustment calculations that are not provided to recipient.
Verkhovna Rada has addressed this issue and adopted the Law No. 466-IX. It stated the maximum fine to of UAH 1020. Subsequently, under the Law No. 786-IX as of 14 July 2020, this maximum was reduced to of UAH 510. At the same time, the issue of fines issued BEFORE the entry into force of these Laws was settled. Similar restrictions apply to fines which were issued within the period from January 1, 2017 till December 31, 2019 and have been challenged (not agreed tax liabilities). The latter means that respective tax notices-decisions are pending in administrative or judicial appeal and monetary obligations under them have not been paid.
What about the challenged fines?
The Supreme Court held that a new wording of the paragraph at issue imposes retroactive effect on the provisions governing fines charged to taxpayers during the period starting 1 January 2017 till 31 December 2019 in case if such fines are falling under the prescribed conditions.
The Supreme Court also made the following important conclusions:
And what should be done if the “old” tax notice-decisions (TND) are being appealed, but new ones had been issued and the fine was paid already? It is advisable to:
Details can be found in the Resolution of the Supreme Court as of 01 September.2020 in the case No. 340/1857/19
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