Tax abolished the complaint: how business will react

Tax Code eliminated from the procedure of administrative appeals of tax decisions in the treatment of local SOT. For the taxpayer this rate along with the new order of charging penalties reducing opportunities for deferment of payment of tax liabilities and penalties. Provisions of the Tax Code, a three-tier administrative procedure for appealing decisions of the State Tax Service has been replaced by a two-tiered. The result - the chain had the opportunity to appeal to the local authority SOT, who made a decision. At this point you can make a complaint to a higher authority of the regional or central level of the SOT. Time limits for filing a complaint procedure for administrative appeal have not changed: the payer is given 10 days from the date of receipt of tax notice (30 days - for reasons not related to the violation of tax laws). Then consider the complaint within 20 days with a possible extension to 60. Body SOT when considering also has the right to increase the tax liability of the payer. Experts consider innovation from different perspectives. "This change positively with the view that recourse to the tax authorities, who took the said decision, hardly constituted an effective and important stage of administrative appeal," - says Elena Zadorozhnaya, lawyer Vasil Kisil & Partners. Indeed, in practice, local tax authorities, and so did not abolish them made the same decision. And hence, their exclusion from the list of subjects procedures administrative appeal to a certain extent be regarded as a positive innovation. For example, it can contribute to optimization of human and material resources in the organs of the SOT. In addition, from January 1 this year, penalties for late repayment of tax liability is calculated on the full amount of tax solutions (including penalties) as and for the period of administrative or judicial review. Therefore, reducing the time the complaint may mitigate negative consequences for the employer associated with the accrual of interest. "Reducing the administrative appeal period will allow taxpayers to reduce the number of adverse consequences in the event of a negative decision, which came into force", - says Tatiana Overseas, director of legal and tax services at KPMG International in Ukraine. However, with this order, any penalty fees SOT can afford to delay the grievance procedure, extending it to a specified maximum. "Statements only in provincial administration or GPS does not necessarily lead to a shortening of the appeal. For the same NC determined that the tax authority may extend the review" - warns private lawyer Dmitry Mitchenok. But for taxpayers' new orders have narrowed the possibilities to delay the payment of tax liability. "If you consider this question from a taxpayer who is trying to postpone the date of payment of tax obligations by appeal, and this applies not only bad faith of the taxpayer, it is unlikely that he would agree that this is a very positive change," - said a senior lawyer law firm "Yurimeks Katerina Muraviev. Because earlier, when the payer has no confidence in the favorable decision of the question of abolishing the tax decision in court, he readily resorted to the tactic of delaying the process. "To delay the time of redemption to the accrued liability of the taxpayer took all the stages of administrative appeal and only after that went to court" - said the lawyer of the Law Firm "Lavrynovych & Partners Roman Blazhko. And although it is now such a possibility remains, it becomes much less profitable for the entrepreneur. In addition, lawyers point out, non-consensual use of the terms "monetary obligation" and "tax liability" in Art. 56 of the Tax Code may result in a presentation to the taxpayer claims the payment of penalties before the completion of the appeals of tax decisions by the courts.