Interlegal proved unlawfulness of penalty accrual for late return of earnings

Interlegal represented interests of its Client – large Ukrainian ship repair yard – under the court proceedings on recognizing as unlawful and cancelling the tax notification award.

The Client filed a request concerning penalty accrual by the State Fiscal Service of Ukraine due to late return of earnings by the Client, in view of the Client’s rejection of its claim against the debtor – foreign company.

State Fiscal Service stated that the Ukrainian business entity’s rejection of its claim against the foreign counteragent on debt recovery under foreign economic contract shall serve as solid grounds for penalty accrual for late return of earnings, irrespective of circumstances serving as reason for such rejection. State Fiscal Service could also justify lawfulness of its position at the first instance court.

Having got engaged in case proceedings at the stage of appeal, one week before the appellate court hearing, Interlegal lawyers collected promptly the missing evidence and drafted explanations to the Client’s appeal, including in respect of correct interpretation of the applicable law provisions emphasizing the Client’s legal position.

Under the results of the Client’s appeal consideration, the appellate court made an order on its satisfaction in full and on recognizing as unlawful and cancelling the tax notification award.

Therefore, Interlegal professional and prompt teamwork facilitated reliable defense of the Client’s lawful rights.

Interlegal associate attorney Mikhail Selivanov led the case.