What has changed in administrative appeal of tax notification-decisions

By the Law of Ukraine No. 1797-VIII of 21.12.2016, the functions of the tax inspections were significantly reduced, in particular, they are deprived of the right to conduct tax audits and take tax notification-decisions that resulted the changes in the procedure for appealing tax notification-decisions. Thus, by the Order of the Ministry of Finance of Ukraine No. 916 of 21.10.2015, registered in the Ministry of Justice of Ukraine on December 23, 2015 under No. 1617/28062, a new “Procedure for processing and filing complaints by the taxpayers and reviewing them by the regulatory authorities” was approved. The experts of the Finance Business Service were considering what significant changes have occurred in the procedure for appealing tax notification-decisions. Based on the provisions of par. 56.3. and 56.6. art. 56 of the Tax Code of Ukraine, administrative appeal against decisions and actions of the controlling bodies is two-level. Previously, this situation involved appealing tax notification-decisions. That is, the complaint against the tax notification-decision of the State Tax Inspectorate, was first submitted to the SFS of Kyiv or to the regional bodies of the SFS, and in case of the refusal to satisfy it, the repeated complaint was filed to the SFS of Ukraine. In this regard, the total period of the administrative appeal was approximately two months. For this moment, the authority on conducting inspections, draft inspection reports and taking tax notification-decisions is assigned to the controlling bodies in the Autonomous Republic of Crimea, the cities of Kyiv and Sevastopol, regions, interregional territorial bodies. By the paragraph 3 of the clause 56.3. article 56 of the Tax Code of Ukraine, it is determined that complaints against the decision of the above-mentioned bodies are submitted to the central executive authority, realizing the state tax and customs policy. Thus, now the complaint to the tax notification-decision is submitted directly to the State Fiscal Service of Ukraine. Taking into account that the controlling body, which is authorized to consider complaints on tax notification-decisions, does not exist higher than the State Fiscal Service of Ukraine, the provisions of the paragraph 56.6. article 56 of the Tax Code of Ukraine (in fact the right to file a second complaint) are not applied. Therefore, for this moment the administrative appeal of a tax notification-decision is one-level. Thus, the actual period of administrative appeal (taking into account the terms: the filing of a complaint, for the consideration of a complaint, the postal mailing) was reduced from two months to one month. Here is the schematic view on the procedure for appealing the tax notification-decisions now. INSPECTION controlling bodies in: Autonomous Republic of Crimea, the cities of Kyiv and Sevastopol, regions, interregional territorial bodies Written form within 10 calendar days following the day when the taxpayer receives the decision of the supervisory authority, which is appealed CHECKING ACT TAX NOTIFICATION-DECISION TAXPAYER COMPLAINT AGAINST TAX NOTIFICATION-DECISION Open consideration Closed consideration SFS OF UKRAINE Within 20 calendar days DECISION on complaint consideration MOTIVATED 1. surname, name, patronymic, name (for legal entities). 2. tax address of the taxpayer, filing a complaint. 3. name of the controlling body. 4. requisites of the appealed decision. 5. the grounds on which the decision is appealed, the circumstances of the case, which, in the opinion of the applicant, are established incorrectly or not established at all by the controlling body. 6. grounding of the disagreement of the taxpayer with the decision of the supervisory authority with reference to the norms of the legislation 7. the requirements and petitions of the taxpayer who files the complaint. 8. the information on the notification of the supervisory authority which decision is appealed, on filing a complaint to the supervisory authority of the highest level. 9. the information on appealing the decision of the supervisory authority in the court. 10. the address to which the decision taken on the basis of the examination of the complaint should be sent.11. the list of documents attached to the complaint. simultaneously, on filing a complaint to the supervisory body of the highest level – the controlling body is notified in writing having taken the appealed decision. specific references are provided to the norms of the Tax Code of Ukraine and other regulations on which it is based, taking into account the materials of the complaint in essence of the requirements and objections of the taxpayer, the controlling body expressed its position ONLY AT THE REQUEST OF TAXPAYER which should contain 1. the list of persons which involvement is necessary to consider the complaint materials in an open meeting; 2. granting consent for the disclosure to the controlling body (officials) of the information about such a payer constituting the confidential information, commercial or bank secrecy, which became disclosed in the performance of official duties by the officials. 3. granting consent to the supervisory authority for the presence of the persons involved during an open meeting. May be involved: 1. authorized representatives of the central executive authority, which ensures the formation and implements the public financial policy. 2. authorized representatives of the central executive authority implementing the state regulatory policy. 3. representatives of mass media. Thus, the experts of the Finance Business Service draw attention to the fact that the significant changes in the administrative appeal of the tax notification-decisions became the one-level appeal procedure and the emergence of the possibility of considering the complaint in an open or closed session.