Corporate, Commercial Law and Dispute Resolution · Contracts, Commercial Law and Transactions
Tax dispute procedure in Ukraine should be selected according to the amount at risk, the type of tax decision, the available evidence and the time required to protect the business. Administrative review can provide a faster and lower-cost first challenge, while court proceedings offer independent judicial consideration and a wider range of binding remedies.
Administrative appeal
Administrative procedure means challenging the decision within the State Tax Service of Ukraine (STS) by submitting a complaint to the competent higher authority.
Advantages of administrative review
The procedure is faster than court proceedings, with review periods stated as 10 or 20 business days;
no court fee is required;
the dispute may be resolved without prolonged litigation;
the procedure can provide an opportunity to correct a documentary or technical issue before escalation.
Limitations of administrative review
Administrative review may be formal in some cases and may not resolve disputes involving a fundamental disagreement with the authority's legal or factual position.
Court proceedings
Judicial review normally involves a claim before an administrative court seeking cancellation of a tax notice-decision, recognition of an action or omission as unlawful, or another remedy available under the procedural rules.
Advantages of court review
independent assessment by the court;
full examination of the evidence within the court procedure;
possibility of obtaining a binding order requiring the authority to take a specified action;
enforceability of the final judgment.
Costs and timing of litigation
Court proceedings can take months or longer and involve court fees and legal costs. These factors should be compared with the amount in dispute and the operational effect of leaving the tax decision unresolved.
When administrative review may be preferable
Administrative procedure may be commercially sensible for a smaller dispute, a correctable documentary issue, an initial incident or a situation where the business wants to resolve the issue without immediate litigation.
When court proceedings may be preferable
Court proceedings may be more appropriate for substantial assessments, significant procedural abuse, an unsuccessful administrative appeal or a dispute where a binding judicial remedy is required.
Using both stages
Administrative review may in some situations operate as a preliminary stage and a well-prepared administrative complaint can strengthen the later court record by preserving evidence and the taxpayer's position.
Tax dispute strategy should compare speed, cost, evidence and the required remedy before choosing the next step. A coherent position from the first complaint through litigation is more valuable than changing the factual explanation at each stage.
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: Tax Dispute in Ukraine: Administrative Appeal or Court Proceedings?