Appeals against tax assessment notices

In July 2025, the Grand Chamber of the Supreme Court (Case No. 500/2276/24) brought to a close a long-standing dispute concerning the time limits for challenging tax assessment notices through the courts. To this day, some lawyers and websites advise referring to 1,095 days — but this is the limitation period for the tax authority to assess taxes, and not the deadline for a taxpayer to bring a case before the court. Taxpayers who relied on this were refused leave to commence proceedings, without the case even reaching the merits of the dispute.

The current rule is: 6 months from the date of receipt of the tax assessment notice, if you have not lodged an administrative complaint with the State Tax Service, or 1 month after the conclusion of the administrative appeal, if you have lodged one.

Challenging a tax assessment notice in court is not a dispute over who is ‘more in the right’. It is an analysis of the specific procedure: whether the audit was conducted lawfully, whether the findings in the notice are substantiated, and whether the State Tax Service exceeded its powers.

+38 095 554-54-24 — legal advice

What we check in every tax assessment notice

Most additional tax assessments are overturned not because of complex economic arguments, but due to errors made by the tax authorities themselves.

Grounds for conducting an audit. Was the audit order lawful? Were the grounds set out in Article 78 of the Tax Code of Ukraine complied with? Was the taxpayer duly notified? An audit ordered in breach of procedure is grounds for setting aside all its findings.

Limitation periods. Has the State Tax Service exceeded the 1,095-day limit (Article 102 of the Tax Code of Ukraine)? This is the period within which the tax authority is generally entitled to conduct an audit and assess liabilities. Additional assessments relating to transactions older than 1,095 days are unlawful by default.

Substantiation of the audit report. Conclusions must be based on specific evidence and references to source documents, rather than on general formulations such as ‘signs of the unreality of transactions have been established’.

The reality of business transactions. The most common ground for additional assessments. The following are relevant here: consignment notes, evidence of the existence of storage facilities and staff, business correspondence, and evidence of the subsequent sale of goods. A ‘dubious reputation of the counterparty’ in itself does not constitute evidence that a transaction is fictitious — this position is consistently upheld by case law.

Arithmetic. The calculation of interest, penalties and the amount of the liability — the court checks this separately, and errors occur more frequently than one might think.

Service of the tax assessment notice. The date of service is the starting point for all time limits. A breach of the service procedure (incorrect method, incorrect recipient) extends or resets the time limit.

Time limits for judicial appeal — and why the choice is irreversible

• 6 months from the date of receipt of the tax assessment notice — if you go straight to court, bypassing the administrative appeal process.
• 1 month from the date of receipt of the decision on the appeal (or the expiry of the time limit for its consideration) — if you initially lodged an appeal with the State Tax Service.

This is a crossroads that cannot be reversed retrospectively. By lodging a complaint, you have deliberately narrowed your window for legal defence to one month. Therefore, the decision must be made immediately upon receipt of the tax assessment notice, rather than after receiving a response from the tax authority.

Interim relief: suspending enforcement whilst the case is before the court

If the tax debt has already been assessed (for example, if you missed the deadline for an administrative appeal), the court may, upon application, suspend the tax assessment notice for the duration of the proceedings. This prevents funds from being debited from accounts and assets from being seized whilst the dispute is ongoing. The application must be filed at the same time as the claim — it is not advisable to wait for the order to commence proceedings.

The course of court proceedings

The claim is filed with the district administrative court in the taxpayer’s place of residence. General timeframes: preparatory proceedings — up to 60 days; consideration of the merits — 30 days; minor cases are dealt with under a simplified procedure. In practice, the first instance in a tax dispute lasts 6–12 months, and with an appeal and cassation proceedings, up to two years.

Depending on the outcome, the court may: annul the tax assessment notice in full, annul it in part (for example, uphold the tax liability but waive the penalty), or dismiss the claim. Partial annulment is a common and entirely workable outcome.

When a solicitor is not needed

If the additional tax assessment is small and you agree with it, it is simpler to pay it than to spend years in court proceedings over a few thousand hryvnias.

A solicitor is needed when:

• the amount is comparable to the costs of defence or exceeds them;
• the State Tax Service has deemed the transactions fictitious — this affects the amount, your reputation and your business partners;
• the audit was conducted with procedural irregularities;
• the deadline is approaching, and a decision must be made quickly;
• security for the claim is required to suspend enforcement pending the court proceedings.

How we work

1. Audit of the tax assessment notice and audit report — procedure, time limits, justification, arithmetic.
2. Calculation of the time limit for lodging an appeal — taking into account whether a complaint has been lodged or not.
3. Gathering evidence of the reality of transactions — source documents, business correspondence, evidence of performance.
4. Preparation of a claim and an application to suspend the tax assessment notice.
5. Representation in court at all levels.
6. Recovery of legal costs from the State Tax Service in the event of a successful outcome.

Cost of services (Appeals against tax assessment notices)

The following are charged separately: court fees and, where necessary, a court-ordered economic expert assessment.

Full price list · Pre-litigation settlement of tax disputes

Questions and answers (Appealing a tax assessment notice)

How long do I have to appeal a tax assessment notice in court?

Six months from the date of receipt of the tax assessment notice if no administrative complaint has been lodged, or one month after its consideration if one has been lodged. The 1,095-day period is the limitation period for the assessment of taxes, not for bringing a claim.

Can enforcement be suspended whilst the case is before the court?

Yes, upon application, the court may suspend the tax assessment notice until the case is resolved. The application should be filed at the same time as the claim.

What are the most common grounds for setting aside a tax assessment notice?

Procedural irregularities in the ordering and conduct of the audit, failure to substantiate the findings of the audit report with specific evidence, exceeding the 1,095-day limitation period, and errors in the calculation of penalties.

Is it possible to challenge a tax assessment notice in part?

Yes, and this is a common outcome: the court may uphold the principal amount of tax but set aside the penalty, or vice versa — depending on which part of the claims has been proven.

How long does a judicial challenge to a tax assessment notice take?

The first instance takes 6–12 months. With an appeal and a cassation appeal, the process can take up to two years.

Can legal fees be recovered from the State Tax Service?

Yes, if the case is won, the court will order the defendant to pay the legal costs, including the costs of legal assistance.

What should you do if the audit has already been completed and you have received the tax assessment notice?

Start counting the time limit straight away: decide whether to lodge an administrative appeal (10 days for the appeal, then just one month for the court hearing), or to file a claim immediately, making full use of the six-month time limit.

What documents are required for an appeal?

The tax assessment notice, the audit report, the audit order, any objections to the report (if submitted), and the source documents relating to the transactions being challenged by the State Tax Service.

Contact a solicitor at ‘Svarog’ regarding an appeal against a tax assessment notice

Send us the tax assessment notice and the audit report — we will review the procedure, calculate the time limits and advise you on the chances of having the decision overturned in your specific case, even before you file a claim.

+38 095 554-54-24 · Kyiv, 7 Khoriva Street, Office 2 (Podil) · Mon–Fri 9:00–18:00