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Claiming Compensation for Losses Caused by Tax Authority Actions

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.

Why is it better with us?

The principal activities of the UBC group of companies are consulting, financial and investment services, search and selection of investors for business and attraction of loans, purchase and sale of established businesses in Ukraine, Europe and other countries, IT services, and development of commercial real estate in Ukraine and abroad. For the development of your business: registration of enterprises in Ukraine, ready-made companies in the EU, registration of companies in England and other countries, corporate law, offshore jurisdictions and offshore companies, business consulting, audit, certification, registration of LLCs, registration of financial companies, asset management companies, mutual investment funds, registration of joint-stock companies, issue of securities and bonds, and support for foreign investment.

The continuously expanding range of regional and foreign partners directly helps resolve our clients’ issues when conducting business both in Ukraine and abroad.

We are always focused on the result you need and will do everything to achieve it within the required timeframe, taking your wishes and requirements into detailed account! Why is it better to start business in Ukraine with UBC? The answer is simple - we have much more practical experience, resources and opportunities.

Price: Claiming Compensation for Losses Caused by Tax Authority Actions

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Since 2003, UBC has created thousands of successful companies in Ukraine - we can help you too. We will be pleased to answer any further questions you may have. We wish you every success in business!