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DeveLAWpment

Today when Ukraine is concerned how to fill the state budget tax authorities are playing the role of a watchdog. Often companies contracting with dealers are under special attention. Tax authorities qualify contracts with dealers as unsecured with commodities that are not aiming at getting products but at boosting prices to decrease the income tax to be paid and receive unfairly high VAT compensations. These contracts are deemed to be contrary to public policy that makes them automatically null and void (Art. 228 of the Civil Code of Ukraine). That is a good pretext for tax authorities to deny to mentioned companies to compensate VAT and urge them to pay additionally the income tax and apply appropriate penalty measures. In such a case it is indispensable to prove that the products couldn’t have been bought in other manner without any dealers icpdf.