Following an inspection, local fiscal authorities discovered a UAH 45 million discrepancy, resulting in ILF’s client having to pay UAH 1.5 million more income tax.
The matter was made complicated further by how inconsistently fiscal authorities handle legislation on displaying exchange rates in accounting, arising from loan agreements with non-resident off-shore companies.
ILF partner on labor and tax law Serhiy Silchenko, assisted by ILF lawyers Olena Kalinina and Arsen Buchkovskiy and armed with relevant legal practice, successfully represented a large Ukrainian telecommunications service provider, proving that the right to display exchange rates in accounting has nothing to do with the status of the party that provided the loan – whether resident or non-resident.
After considering the arguments against the inspection, the Dispute Committee of the State Fiscal Service supported the company’s legal stand and revoked the sanctions.
ILF lawyers proved that the funding was legal and protected the client from similar problems in the future.