Cassation Administrative Court of the Supreme Court prohibited the State Fiscal Service from imposing sanctions on taxpayers, who are the residents of the Donbas conflict zone, as the press-office of the Supreme Court of Ukraine reported.
“Sanctions shouldn’t be imposed on the taxpayers, who are registered in the tax agency in the Donbas conflict zone – this is an exemplary decision of the Supreme Court,” the message says.
The Supreme Court made this decision composed of the judicial panel of the Cassation Administrative Court after having considered an exemplary case on a claim of the region public utility service “Luhansk support center for youth initiatives and social research” against the regional authority of the State Fiscal Service on the cancellation of the decision to impose sanctions and apply penalties for the late payment of the social security tax.
The Court noted that the fact that the taxpayers of the social security tax are registered in the income and tax authorities, located in the Donbas conflict zone, is a reason to suspend imposing sanctions on these taxpayers.
The claimant has substantiated his claim saying that when the decision was made, Luhansk and Severodonetsk were and still are the territories, where the anti-terrorist has been and continues to be conducted. This is a reason to suspend applications of measures of impact, charges, and amenability for the violation of the law on the collection and accounting of taxes for a compulsory state social insurance.
The Court noted that the arguments of the State Fiscal Service about the loss due to the provisions of the law are not consistent with the reality.
The Court has also decided that the sanctions can be imposed only if the taxpayers, registered in the Donbas conflict zone, are enlisted in the systems of tax authorities and if the taxpayer does not fulfil their duties occurred at the beginning and/or after the anti-terrorist operation is over.