On September 14 the Chamber Members had an opportunity to discuss current issues in tax litigation with Mykhailo Smokovych, Head of Cassation Administrative Court within Supreme Court and Raisa Khanova, Secretary of Judicial Chamber on Tax Disputes of Cassation Administrative Court within Supreme Court. In particular, the meeting was focused on the judicial practice regarding use of judgments under the Article 205 of the Criminal Code of Ukraine (“Fictitious Entrepreneurship”) as an evidence in tax disputes.
The issue initially was raised in the context of difference of judicial practice of the Supreme Court of Ukraine and the High Administrative Court of Ukraine, creating uncertainty.
Opening the meeting, Mykhailo Smokovych updated participants on the current state with workload, transferred to the Cassation Administrative Court within Supreme Court after judicial reform. He also stressed that Cassation Administrative Court cannot change practice of the Supreme Court of Ukraine and it is more issue to be considered by the Big Chamber.
Raisa Khanova provided further details on approach of Judicial Chamber on Tax Disputes to this category of cases. She stressed that all the elements of the case should be considered in every single case and no “universal evidence” can be found. She also stressed that companies should prepare cases well to strengthen their position.
In course of the discussion were raised the issues of importance of cooperation with tax authorities and third party due diligence.