As a result of the audit, a tax office mentioned the administrative expenses overstatement in the amount of 2 million UAH on purchasing legal services in the act, which were directed not to the economic activity.
Our experts representing the client’s interests in the taxing authority of the highest level confirmed justification of defining expenditures by written evidence, such as exceptions from courts’ cases, attached procedural documents, and acts of acceptance. As a result of objections’ consideration to an act of inspection, the experts of our company confirmed to the client of the international company expenses on legal services in the amount of about 2 million UAH.
After considering the provided evidence and explanations at the dispute commission, conclusions of inspection’s act have been redrafted, according to which expenses of the client have been confirmed. Moreover, due to a developed action plan by attorneys of the company, tax liabilities have not been accrued to the client, so, expenses on administrative/judicial appeal have not been incurred.