Appeal of a Tax Notice-Decision (TND)

What is a Tax Notice-Decision, and When Should It Be Appealed?

A Tax Notice-Decision (TND) is an official document issued by the controlling authority (State Tax Service, STS) based on a taxpayer audit. Receiving such a notice impacts the financial stability of a business, as it may contain demands for additional tax payments, penalties, and interest.

A TND should be appealed if there are unlawful tax assessments, calculation errors, or non-compliance with legal norms. The procedure for appeal is regulated by the Tax Code of Ukraine.

Grounds for Appealing Tax Decisions: Common Errors by the Tax Authority

Tax authorities often make errors during audits, leading to unlawful tax assessments. These errors may result from human factors or flaws in legislative regulations.

The most common grounds for appeal include:

1. Mismatch between findings and actual circumstances – tax authorities may ignore submitted evidence or misinterpret data.
2. Violation of audit procedures – improper notification about the audit, missing required documents.
3. Incorrect interpretation of tax legislation – discrepancies in the application of legal norms.
4. Duplication of tax liabilities – the tax authority may charge the same tax twice.
5. Unjustified classification of a company as risky – without sufficient grounds.

Administrative Appeal of Tax Decisions: Deadlines, Documents, and Key Aspects

An administrative appeal is the first stage of taxpayer protection without going to court. This is a quicker and less costly way to rectify an issue if the tax decision is unlawful.

The process includes:

1. Filing a complaint with the STS of Ukraine – within 10 days of receiving the TND.
2. Documentary justification – submission of evidence, financial calculations, and auditor reports.
3. Review of the complaint – processing takes up to 30 days.
4. Receiving a decision – if the STS rejects the complaint, the taxpayer can proceed to court.

These procedural steps are regulated by the Administrative Court Procedure Code of Ukraine.

Judicial Appeal of Tax Notices-Decisions: When to Go to Court?

If an administrative appeal does not yield results or if the tax decision is clearly unlawful, the taxpayer should consider taking the case to court. Litigation is more complex but allows for an independent review of the case and the cancellation of illegal tax charges.

Advantages of a judicial appeal:

• Possibility of an impartial case review.
• No influence from tax authorities.
• Suspension of the TND execution during court proceedings.

Risks and Consequences of Tax Decision Appeals: What to Consider?

Appealing tax decisions is an important process, but it carries certain risks. Taxpayers must be prepared for financial costs, time delays, and potential increased scrutiny from tax authorities.

Key aspects to consider:

• Financial costs – court fees, legal service expenses.
• Length of the process – administrative review takes up to 30 days, while a court case may last several months.
• Likelihood of additional audits – the tax authority may initiate new inspections.

Role of a Tax Lawyer in Challenging STS Decisions

Tax disputes often require legal experts who understand the nuances of legislation and case law.

A professional tax lawyer will help:

• Analyze the legality of the TND.
• Develop a defense strategy.
• Prepare legally sound objections.
• Represent the client’s interests in court.

Benefits of Working with Dextra Law

The law firm Dextra Law has years of experience in tax law and helps clients successfully appeal unlawful tax decisions.

By working with us, you get:

• A thorough case analysis and an effective strategy.
• Legal support at all stages of administrative and judicial appeals.
• Protection of business interests against unlawful actions by tax authorities.
• Transparent and predictable procedures.

By choosing Dextra Law, you gain a reliable partner in tax law matters.

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Frequently Asked Questions (FAQ)