Representation in Courts in Tax Disputes

A tax dispute in court is not just a formal challenge to a decision of the tax authority. It is a full evidentiary process where the claim, remedy, evidence, procedural position and court strategy must be prepared correctly.

VINCO’S represents businesses, individual entrepreneurs, directors and owners in tax disputes before administrative courts: from drafting the claim to court hearings, appeal, cassation and support with enforcement of the judgment.

A tax attorney is needed when a dispute with the tax authority cannot or should not be resolved only through administrative appeal. Court protection may help cancel an unlawful decision and, where necessary, oblige the tax authority to take specific actions to restore the taxpayer’s rights.

• a tax notice-decision, tax demand or other decision has been issued;
• an administrative appeal was unsuccessful or the deadline has already expired;
• the tax authority refuses to register VAT invoices or adjustment calculations;
• the taxpayer has been classified as risky or has not been removed from the risky taxpayers list;
• VAT registration or single tax status has been cancelled;
• fines, penalties, tax debt or other liabilities have been assessed;
• a tax audit was conducted with violations or the audit findings do not match the facts;
• the business needs protection from unlawful actions or inaction of the tax authority.

VINCO’S works with different categories of tax litigation where tax analysis, procedural strategy and a strong evidence base are equally important.

• appeal of tax notice-decisions;
• disputes arising from documentary, factual and desk tax audits;
• disputes concerning VAT, corporate income tax, single tax and excise tax;
• disputes over blocked VAT invoices and refusals to register them;
• removal of a taxpayer from the risky taxpayers list;
• appeal against cancellation of VAT registration;
• appeal against cancellation of single tax status;
• disputes over tax debt, tax liens and collection of funds;
• disputes over cash register penalties, employment-related violations, licences and transaction records;
• tax disputes involving individual entrepreneurs.

Court representation in a tax dispute is not limited to attending hearings. The main work starts before filing the claim: the lawyer analyses the audit report, the tax authority’s decision, primary documents, accounting data, contracts, tax reporting and relevant court practice.

The legal position is then developed: which conclusions of the tax authority are wrong, which evidence confirms the reality of transactions or the legality of the taxpayer’s actions, what procedural violations occurred, and which remedy will be effective.

Court support in a tax dispute usually includes the following stages:

• initial consultation and analysis of the tax decision or audit results;
• review of administrative and court appeal deadlines;
• analysis of documents, evidence, tax reporting, contracts and primary documentation;
• definition of the claim subject and the appropriate remedy;
• preparation of the claim, motions, explanations and evidence package;
• filing the claim with the administrative court and supporting the opening of proceedings;
• representation of the client at court hearings;
• preparation of responses, additional explanations, objections and procedural documents;
• support during appeal and cassation review if needed;
• control over enforcement of the judgment and communication with the tax authority after the case is completed.

Deadlines are critical in tax disputes. They depend on the type of decision, whether administrative appeal was used, the date of receipt of the decision, the content of the claims and the selected court remedy.

Before filing a claim, the attorney checks whether the court deadline has not been missed, whether a motion to restore the deadline is required, which claims should be combined, whether interim relief is needed, and which evidence should be submitted at the start of the process.

In court, it is not enough simply to disagree with the tax authority. The taxpayer must provide evidence confirming the reality of transactions, business purpose, proper documentation, movement of assets, payment, personnel, resources and other relevant facts.

• contracts, annexes, specifications and primary documents;
• acts, invoices, bills, payment documents and bank statements;
• tax and financial reporting;
• documents confirming transportation, storage, performance of works or provision of services;
• correspondence with counterparties, tender documents and technical tasks;
• HR documents, equipment, warehouse, office or production documents;
• complaints, objections, tax authority replies, audit reports and decisions.

Handling a tax court dispute without professional support may create additional risks for the business. Incorrect claims, insufficient evidence, missed deadlines or a weak procedural position may lead to dismissal even where the tax authority’s decision was questionable.

• missed deadline for filing with the court;
• wrong remedy or incorrectly drafted claims;
• insufficient evidence of real transactions;
• failure to submit important documents at an early stage;
• ignoring procedural documents filed by the tax authority;
• risk of losing the case due to technical or procedural mistakes;
• further collection of tax debt, fines or penalties.

The following documents are usually needed to prepare a court position in a tax dispute:

• tax notice-decision, tax demand or other tax authority decision;
• audit report, objections to the report and the tax authority’s response;
• administrative complaint and decision on the complaint, if filed;
• tax, financial and accounting reports;
• contracts, primary documents, payment documents and bank statements;
• documents regarding counterparties, goods, works, services, logistics or resources;
• correspondence with the tax authority, electronic receipts and messages from the taxpayer’s electronic cabinet;
• information on current business consequences: debt, blocked invoices, risky status, seizures or counterparty claims.

VINCO’S provides full support in tax court disputes: from analysis of the tax authority’s decision and claim preparation to court hearings, appeal, cassation and enforcement of the judgment.

We help build a strong evidence base, draft the claims correctly, choose an effective remedy, prepare procedural documents and represent the client in disputes with the tax authority.