KPMG Law Ukraine defended the interests of a representative office of one of the leading electrical corporations
KPMG Law Ukraine defended the interests of a representative office of one of the leading electrical corporations in dispute with the tax authority regarding the corporate income tax payment. The tax dispute arose in relation to a technical mistake made when filling out the income tax return, and namely, in connection with the failure to mark that the tax return is filed by the “representative office of a non-resident”. As a result, the tax authority claimed that the representative office did not accrue and did not pay the appropriate amount of income tax and it imposed fines of 5% of the allegedly understated tax liability.
At the stage of administrative appeal, the lawyers of KPMG Law Ukraine tax disputes resolution practice proved that the technical error in reporting documents did not affect the procedure of the taxpayer’s settlements with the budget. Therefore, there is no reason to hold the representative office liable under the Tax Code of Ukraine. Accordingly, the tax notice-decision was canceled as unlawful. As a result, property rights of the Company were protected without appeal to court, having reduced the time and financial costs of the taxpayer.
The project was implemented under the leadership of Konstantin Karpushin, partner, head of the transfer pricing and tax dispute resolution group, by Larysa Antoshchuk, lawyer, head of tax dispute resolution practice and Iryna Khyliak, KPMG Law Ukraine lawyer.