Anna Vynnychenko conducted a business workshop on the unblocking of tax invoices and innovations in conducting audits during the moratorium

As part of the regular practical seminars on innovations in taxation, organized by the Business Club for business representatives, managing partner of WinnerLex law firm, Anna Vynnychenko, delivered a report on the topic “Tax Innovations 2021: Practical Advice for Business.”

During her over 4-hour presentation, many relevant issues regarding the innovations in tax legislation were addressed, with particular attention given to the following topics:

1. New Tax Invoice Blocking Procedures:

• Inclusion in the list of high-risk tax payers
• Unofficial criteria for the riskiness of taxpayers and transactions
• Negative tax information about counterparties as a factor of risk
• Lawyer inquiries and public information requests as tools for obtaining information on the specific grounds for blocking and risk classification
• Building the correct defense strategy from the initial steps of unblocking and removing risk status
• Challenging the decision on the non-acceptance of data tables
• Correct submission of documents and commission work
• Required evidence for the explanation and complaint submission stage
• Removing risk status through a complaint to the business ombudsman
• Common mistakes made by taxpayers at all stages of unblocking tax invoices
• Legal grounds for canceling the decision to refuse registration of tax invoices/adjustment acts in court
• Analysis of the current Supreme Court practices on unblocking tax invoices and removing risk status
• Specifics of canceling the decision to refuse registration of tax invoices/adjustment acts and assigning risk status in court (based on specific cases)
• Describing circumstances and forming the request section of a lawsuit to ensure proper execution of the court decision
• Legality of holding back 20% of payment in contracts until the tax invoice is registered

2. Conducting Audits and Lifting the Moratorium:

• Was the moratorium on tax audits lifted by the Cabinet of Ministers Resolution No. 89 of February 3, 2021, “On Reducing the Duration of the Limitation on Certain Types of Audits”?
• The procedure for granting and denying access to audits during quarantine
• Downtime and quarantine as possible grounds for denying access to audits: legality and consequences
• New criteria for selecting taxpayers for the planned schedule of documentary audits according to the updated procedure in the Ministry of Finance’s order No. 548 from September 7, 2020
• No moratorium on unplanned audits if VAT to be refunded exceeds UAH 100,000 and the procedure for conducting them
• Procedural violations during audits as grounds for canceling tax notices
• Changes in the procedure for filing and reviewing complaints by taxpayers and controlling authorities, as per the Ministry of Finance Order No. 9 of January 14, 2021

In addition to the innovations mentioned, the seminar also traditionally covered topics related to successfully navigating tax audits and audits by the State Labor Service, the risk of recognizing labor relations under the draft law “On Amendments to the Labor Code of Ukraine Regarding Defining the Concept of Labor Relations and Their Indicators” No. 5054, and proper support for judicial appeals against decisions of controlling authorities.

For each topic, practical recommendations were provided to businesses based on successful cases handled by WinnerLex, as we have our own positive track record of assisting clients in complex issues with controlling authorities and continuously monitor various effective methods to achieve the desired legal outcomes.