Vasil Kisil & Partners Successfully Defends Kamianske Agro LLC in Tax Dispute Exceeding UAH 18 Million

Vasil Kisil & Partners’ tax disputes team has successfully represented Kamianske Agro LLC, a member of the Dnipro Agro Group, in a high-stakes tax dispute valued at over UAH 18 million.

The case centered not only on the taxation of income paid to a non-resident but also on the tax authority's adherence to legal requirements during the inspection process.

After eleven court hearings, the Supreme Court reached a clear and unequivocal decision. It found that the actions of the tax authority, including its failure to comply with the procedures outlined in the Tax Code of Ukraine regarding the ordering and conduct of inspections, were grounds to invalidate the decisions made by the tax body.

The Court emphasized that, in such cases, courts must first assess whether the tax authority complied with inspection procedures before delving into substantive issues such as potential tax violations by the taxpayer. Only upon determining procedural compliance should the courts proceed to examine the substance of the tax dispute.

Commenting on the court’s decision, Yehor Svidlo, attorney-at-law and Head of the Tax Disputes Practice at Vasil Kisil & Partners, stated, “The Supreme Court has reaffirmed the importance of a strict and legally sound approach to resolving tax disputes, which is a promising development. Government agencies must always act within the confines of the law in exercising their public functions. Procedural violations cannot be overlooked; courts must address these issues before considering the substantive matters of the case. Administrative litigation should set a precedent for transparent, fair relations between civil society and government authorities, prioritizing the protection of citizens’ and companies’ interests over those of government bodies.”

The Vasil Kisil & Partners team representing Kamianske Agro LLC included Yehor Svidlo, attorney-at-law, and associate Alina Ratushna.