“The Role of a Lawyer in the Modern Business Environment”
22.04.2014
This and some legal aspects of business activities are discussed by Anna Vinnychenko, Director of WinnerLex Law Firm.
– Anna, how necessary are the services of a lawyer for business representatives?
Business activities in Ukraine are regulated by many normative acts, which are rules set by the state for conducting business. The need for understanding the peculiarities of legal regulation of business activities arises for an entrepreneur from the moment of registration of their business. Some do not think about consulting a lawyer until the issue at hand transforms into a legal dispute.
At the same time, it is not uncommon for entrepreneurs to seek legal assistance not only when problems arise but also to prevent them. For example, before a tax inspection, the company may consult in advance on potential issues, or before signing a contract, a client may approach lawyers to draft a contract that will best protect their interests.
– How can your company primarily assist entrepreneurs?
Our company provides legal services for business activities starting from the creation and state registration of the business. For existing businesses, our company provides legal services ranging from drafting contracts to representing clients in courts at all levels for various types of legal disputes, including debt recovery, contract annulment, and corporate disputes between business entities and their participants (shareholders).
The main focus of our legal practice is protecting business entities in their relations with tax authorities, including court representation in tax disputes.
– What, in your opinion, are the current issues in the relations between businesses and tax authorities?
Working on each client’s specific issue reveals numerous problems of this nature. For example, one pressing issue is the legality of actions by tax authorities regarding the invalidation of contracts. In a number of orders and clarifications by the State Tax Administration, it is stated that tax authorities have the unquestionable right to independently declare contracts between businesses unlawful. Based on this position, during inspections, the tax authorities describe violations they believe occurred when the contract was concluded, stating that they consider it void. As a result, the business loses the right to classify relevant sums as expenses and tax credit, and tax notices are issued for additional tax liabilities and penalties. Moreover, in some cases, the negative consequences can extend not only to the business under inspection but also to those who had dealings with it during the inspection period.
However, such actions by tax authorities contradict current legislation. Therefore, in the event of such problems, the taxpayer’s interests can be effectively protected in court, which our company has repeatedly confirmed in practice.
The Tax Code has organized many aspects of business activities and reporting. However, some of its provisions may restrict the rights and interests of taxpayers in certain situations. For example, some norms of Article 58 of the Tax Code state that if for any reason a postal worker is unable to deliver a tax notice to the business and returns it to the tax authority with the appropriate mark, the notice will be considered delivered, resulting in tax debt. If the tax debt is not paid within 10 days, all assets of the business will be subject to tax lien. In working with a client who has approached our company in advance, we warn about possible problems. By receiving the tax notice in time, the taxpayer can challenge it in the established manner, suspending its effect.
Therefore, of course, there are issues in the relationship between business entities and tax authorities, but timely consultation with a qualified specialist in tax law allows for finding optimal solutions to most of these problems and avoiding negative consequences for the business.
Home