The appellate court upheld the Client’s legal position and affirmed the judgment of the court of first instance, which had granted the Client’s claims in full and cancelled the disputed tax assessment notices.
The dispute arose following a scheduled documentary on-site tax audit, as a result of which the tax authority assessed additional value added tax liabilities against the Client. The additional assessments were based on the State Tax Service’s position that the Client had allegedly applied an improper VAT treatment to incentive payments made to its counterparties.
ETERNA LAW developed and consistently defended a comprehensive legal position confirming the lawfulness of the Client’s approach, successfully rebutting the tax authority’s arguments both before the court of first instance and during the appellate proceedings.
As a result, the judgment in favour of the Client was upheld on appeal, and the additional tax assessments remained cancelled.
The matter was handled by Associate Vladyslav Holubokov, Senior Associate Artur Koval, and Counsel Lidiia Zhovtiak, under the supervision of ETERNA LAW Partners Kristina Shapovalova and Oleh Malskyy.
