This is a method of resolving disputes between a taxpayer and the tax authority without going to court. The essence of the process is clear from its name. The parties seek a resolution through an administrative procedure, applying the provisions of the Tax Code of Ukraine.
Under Article 56 of the Tax Code of Ukraine, a taxpayer has the right to choose their course of action: either an administrative appeal or going straight to court. It is important to understand that once legal proceedings have commenced, it is no longer possible to revert to the pre-litigation procedure.
In practice, disputes with the tax authorities arise due to differing interpretations of the law. The tax authority may consider a business’s actions to be a violation, whilst the taxpayer has a different justification. It is important not to act emotionally in such situations. The correct strategy is to analyse the decision and prepare a well-reasoned case for challenging it. This is where a tax lawyer comes in, someone who understands the practice of the State Tax Service and can assess the case’s prospects even before a complaint is filed.
Which disputes with the tax authorities can be resolved without going to court?
Not all conflicts require immediate legal proceedings. The law allows a significant proportion of issues to be resolved through administrative procedures. The main categories of disputes are:
- refusal or blocking of the registration of tax invoices;
- decisions on additional tax assessments;
- orders and audit findings;
- unlawful or excessive requests from the State Tax Service.
In each case, the procedure for appealing tax decisions involves lodging a complaint with a higher tax authority. The process usually looks like this:
- analysis of the State Tax Service’s decision;
- preparation of a legal position;
- drafting and submission of a complaint;
- participation in the examination of the case materials;
- receipt of a decision following the administrative review.
This approach allows us to avoid the expenditure of time and resources that is inevitable when tax disputes proceed to court.
The procedure for pre-litigation settlement of tax disputes at Svarog
Svarog’s lawyers base their pre-litigation settlement of tax disputes not on standard procedures, but on an analysis of the client’s specific situation. Every detail matters here. From the source documents to the logic behind the tax authority’s decision. The work is usually carried out in stages. This allows us to avoid wasting time and immediately build a case that has a chance of success.
Stages of the work:
- initial consultation and analysis of the situation;
- review of tax authority decisions and documents;
- formulation of a legal position;
- preparation of complaints and objections;
- support during the dispute resolution process;
- negotiations with the tax authorities.
This approach makes it possible to quickly determine whether it is possible to effectively challenge tax decisions without going to court, or whether the case requires further escalation to tax litigation in court. In most cases, it is a properly prepared administrative complaint that changes the outcome. But the key here is the argumentation, not simply the submission of documents.
Why is it important to engage a tax lawyer?
Tax disputes are rarely straightforward. Tax authorities operate within the confines of their own guidelines, which are often interpreted strictly. Without practical experience, it is difficult to assess the prospects of a case. A tax lawyer helps to:
- identify weaknesses in the tax authority’s decision;
- properly structure the evidence;
- avoid procedural errors;
- choose the right defence strategy.
This is particularly important when dealing with significant additional tax assessments or the suspension of business operations.
Benefits of working with our specialists
Turning to Svarog means working towards a result in a specific dispute. Key advantages of the company:
- practical experience in tax disputes;
- a tailored strategy for each case;
- rapid response to actions by the tax authorities;
- support at every stage;
- payment based on results.
Are you facing pressure from the tax authorities or have you received a decision with which you disagree? It is important not to delay your response. In tax disputes, time often plays a crucial role. Contact us for the best possible resolution.
FAQ: frequently asked questions
How can a tax dispute be resolved without going to court?
Through an administrative appeal: a complaint is submitted to a higher tax authority with arguments and evidence.
What is a pre-litigation appeal against a tax decision?
This is a procedure whereby a higher-level tax authority reviews the decision without going to court.
What are the time limits for appealing tax decisions?
Usually 10–30 days, depending on the type of decision. It is important not to miss the deadline.
How do you prepare a complaint to the tax authority?
You need to analyse the decision, gather documents, formulate legal arguments and set them out in a structured complaint.
When should you proceed to a legal dispute with the tax authority?
When an administrative appeal has been unsuccessful or the case involves a complex legal position.
How much does pre-litigation settlement of a tax dispute cost?
The cost depends on the complexity of the case, the volume of documents and the level of the dispute. It is usually determined on a case-by-case basis following an analysis.