Corporate, Commercial Law and Dispute Resolution · Contracts, Commercial Law and Transactions
Tax authority damages claim may be considered where unlawful decisions, delayed procedures or other wrongful actions of the Ukrainian tax authority cause measurable financial loss to a taxpayer. Compensation requires more than showing that the authority made an error: the taxpayer needs evidence of illegality, the amount of loss and the causal connection between the two.
Potential Grounds
an unlawful or unsupported tax decision;
wrongful financial sanctions;
delay in refunding overpaid tax;
an improperly conducted tax inspection that caused loss;
other unlawful acts that directly damaged the taxpayer.
Types of Loss
Direct financial loss, documented lost profit, legal costs connected with challenging tax-authority actions and other real losses are possible categories of compensation.
Evidence
tax decisions, notices and correspondence;
documents proving expenses or lost income;
expert evidence where valuation is required;
records demonstrating the causal link between the authority's action and the loss.
Procedure
The source material describes an initial administrative or court challenge to the unlawful tax action, followed by a damages claim once the illegality has been established. The court then assesses the existence, amount and causal basis of the claimed loss.
Tax damages litigation strategy should build the compensation evidence at the same time as the underlying tax decision is challenged. Preserving financial records and causation evidence early makes it easier to quantify the business loss if the authority's action is later declared unlawful.
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Price: Claiming Compensation for Losses Caused by Tax Authority Actions