Court of Appeal Affirms Position of Vasil Kisil & Partners’ Lawyers in UAH 33 Million Tax Dispute

19/ 07/ 2024

In February 2024, Vasil Kisil & Partners successfully represented Rost Agro, one of Ukraine’s largest producers and exporters of seed products, in a tax dispute worth UAH 33 million. Having considered the appeals lodged by tax authorities, the administrative court of appeal agreed with the position taken by the lawyers of Vasil Kisil & Partners. It stressed that Rost Agro LLC had no right to resort to court due to specific aspects of the domestic law of the counterparties country of registration, with whom Rost Agro LLC entered into foreign trade agreements. Therefore, the fact that Rost Agro LLC applied to a notary for an executive endorsement was considered a circumstance leading to the suspension of the period to charge penalties for violating the time limits set for making settlements under foreign trade agreements between a Ukrainian resident legal entity and a foreign resident legal entity. Furthermore, the court of appeal affirmed the position taken by the lawyers of Vasil Kisil & Partners and the trial court concerning the implications of procedural violations committed by the tax authorities during the inspection. The court acknowledged that a tax inspection conducted in violation of legal prohibitions, such as the quarantine restrictions in effect, was a standalone ground for deeming the inspection findings unlawful. Senior Associate and Attorney-at-Law Yehor Svidlo and Associate Alina Ratushna acted in court for Rost Agro LLC.

In February 2024, Vasil Kisil & Partners successfully represented Rost Agro, one of Ukraine’s largest producers and exporters of seed products, in a tax dispute worth UAH 33 million.

Having considered the appeals lodged by tax authorities, the administrative court of appeal agreed with the position taken by the lawyers of Vasil Kisil & Partners. It stressed that Rost Agro LLC had no right to resort to court due to specific aspects of the domestic law of the counterparties’ country of registration, with whom Rost Agro LLC entered into foreign trade agreements.

Therefore, the fact that Rost Agro LLC applied to a notary for an executive endorsement was considered a circumstance leading to the suspension of the period to charge penalties for violating the time limits set for making settlements under foreign trade agreements between a Ukrainian resident legal entity and a foreign resident legal entity.

Furthermore, the court of appeal affirmed the position taken by the lawyers of Vasil Kisil & Partners and the trial court concerning the implications of procedural violations committed by the tax authorities during the inspection.

The court acknowledged that a tax inspection conducted in violation of legal prohibitions, such as the quarantine restrictions in effect, was a standalone ground for deeming the inspection findings unlawful.

Senior Associate and Attorney-at-Law Yehor Svidlo and Associate Alina Ratushna acted in court for Rost Agro LLC.