FEDOTOV&PARTNERS attorney Viktoriia VDOVYCHENKO successfully represented a sole proprietor during a documentary unscheduled off-site tax audit, resulting in a reduction of penalties by over UAH 2 million.

A FEDOTOV&PARTNERS attorney successfully handled a documentary unscheduled off-site audit of a sole proprietor, resulting in a reduction of penalties by more than 2 million hryvnias.

Case background:

Following a tax audit, the taxpayer was issued an audit report in which the regulatory authority recorded violations that, in its view, warranted additional tax assessments and penalties totaling over 2 million UAH.

It is important to note that this audit was conducted after the individual had already ceased their business activities. While the entry of the termination of a sole proprietorship into the Unified State Register does not automatically close tax registration records, as they remain open until the relevant tax audit procedures are completed.

After analyzing the audit report and the documents provided by the client, attorney Viktoriia VDOVYCHENKO prepared and submitted well-founded written objections to the audit report, outlining the taxpayer's legal position and providing supporting documentation. 

Actions taken by the FEDOTOV&PARTNERS attorney: As part of the case representation, a legal analysis of the audit report and its findings was conducted, a legal strategy for refuting these findings was developed, and written objections to the audit report were prepared and submitted.

Upon reviewing the submitted objections, the regulatory authority decided to conduct a follow-up documentary unscheduled audit, taking into account the documents and explanations provided by the taxpayer.

Result: Ultimately, following the re-examination of the case circumstances and the submitted documents, the taxpayer received a tax assessment notice for only 15,000 UAH.

Thus, thanks to a properly formulated legal position and a timely response to the tax authority's findings, the FEDOTOV&PARTNERS attorney was able to achieve a result for the client that avoided financial liabilities of over 2 million UAH.

This case confirms once again that even when an audit report includes significant additional assessments, the timely submission of properly prepared objections and professional support during the administrative appeal process can significantly influence the final outcome.

FEDOTOV&PARTNERS provides comprehensive support for tax audits, prepares objections to audit reports, handles appeals against tax assessment notices, and protects the interests of taxpayers at all stages of interaction with regulatory authorities.