Is it worth to claim against tax authorities’ decisions? Taking into
account the results of “Taxpayer is Right” Index 2014, we can state: “It's worth a
try!” The Index shows in whose,
taxpayers’ or tax authorities’, favour judgements were taken in case a taxpayer
had claimed against tax authorities’ decision-notices.
In 2014, taxpayers’ chances for successful litigation when the Ukrainian tax
authorities’ decisions are challenged, equalled 86.59%. This means that courts supported the taxpayers on average in 87 cases out of 100, and the tax authorities found support in courts
only in 13 cases.
The “50” mark in the Index
shows a balance point at which the taxpayers and tax authorities have
fifty-fifty chances to win the case. The Index exceeding “50” mark means that
the odds are in favour of the taxpayers. If the Index reaches “100” mark, it
will mean that the tax authorities’ decisions fail examination in courts. The
Index’s fall to zero would mean that the taxpayers have no chance in courts
against the tax authorities.
Strangely enough, but the business is firm in belief
that the tax authorities are invincible and no one can change their decisions.
For several years, the Index shows a reverse tendency!
As it follows from the Index calculation results, in case a taxpayer had lost a case in a court of appeal, the odds probability
to change something in the court of cassation
instance is relatively low (42 to 58). At the same time, in case a taxpayer was satisfied with a court of
appeal’s decision, but the tax authority was not, the tax authorities’
chances for successful cassation claim were trifling (such claims were satisfied
only in 3.5% of cases).
While calculating the Index, another curious fact has been revealed: the tax
authorities, comparing to the taxpayers, were more often dissatisfied with judgments
and filed appeals. At the same
time, for each failed taxpayers’ appeal, there were almost eight failed appeals
of the tax authorities. Consequently, it is the tax authorities who are responsible for flooding out the Higher
Administrative Court of Ukraine with their hopeless appeals.
For the second consecutive year, Cai &
Lenard Law Firm’s tax experts calculate
and publish the Index on a quarterly basis. To that end, from 2 to 3 thousand judgments of the court of cassation instance in cases
with tax authorities’ decision-notices being challenged are processed and
analyzed monthly.
Taxpayer is (almost) always right!
Is it worth to claim against tax authorities’ decisions? Taking into account the results of “Taxpayer is Right” Index 2014, we can state: “It's worth a try!” The Index shows in whose, taxpayers’ or tax authorities’, favour judgements were taken in case a taxpayer had claimed against tax authorities’ decision-notices.
In 2014, taxpayers’ chances for successful litigation when the Ukrainian tax authorities’ decisions are challenged, equalled 86.59%. This means that courts supported the taxpayers on average in 87 cases out of 100, and the tax authorities found support in courts only in 13 cases.
The “50” mark in the Index shows a balance point at which the taxpayers and tax authorities have fifty-fifty chances to win the case. The Index exceeding “50” mark means that the odds are in favour of the taxpayers. If the Index reaches “100” mark, it will mean that the tax authorities’ decisions fail examination in courts. The Index’s fall to zero would mean that the taxpayers have no chance in courts against the tax authorities.
Strangely enough, but the business is firm in belief that the tax authorities are invincible and no one can change their decisions. For several years, the Index shows a reverse tendency!
As it follows from the Index calculation results, in case a taxpayer had lost a case in a court of appeal, the odds probability to change something in the court of cassation instance is relatively low (42 to 58). At the same time, in case a taxpayer was satisfied with a court of appeal’s decision, but the tax authority was not, the tax authorities’ chances for successful cassation claim were trifling (such claims were satisfied only in 3.5% of cases).
While calculating the Index, another curious fact has been revealed: the tax authorities, comparing to the taxpayers, were more often dissatisfied with judgments and filed appeals. At the same time, for each failed taxpayers’ appeal, there were almost eight failed appeals of the tax authorities. Consequently, it is the tax authorities who are responsible for flooding out the Higher Administrative Court of Ukraine with their hopeless appeals.
For the second consecutive year, Cai & Lenard Law Firm’s tax experts calculate and publish the Index on a quarterly basis. To that end, from 2 to 3 thousand judgments of the court of cassation instance in cases with tax authorities’ decision-notices being challenged are processed and analyzed monthly.
Practices: