Since then, the tax authority does not have the right to take any measures on collection of the debt, penalty or fine sanctions.
The Supreme Court of Ukraine considered the cassation appeal of the individual entrepreneur on cancellation of the court of the first instance regarding collection of the tax debt.
Due to the circumstances of the case, the entrepreneur will be charged a penalty for untimely payment of rental fee for land plots of public communal properties for 2008, 2009 according to declarations – Strana reports.
The tax authority initiated court action to recover this tax debt in 2016. The lawsuit was justified, because as of November 24, 2016, the defendant had tax debt, related to payment of the land tax penalty, amounting to UAH 11,500.
The court of first instance and appellate court satisfied stated claims and collected tax debt from the defendant. The courts stated reasons for their decisions by the fact that the claimant legally accrued penalty for the amount of taxpayer’s debt in accordance with the regulations of Article 129 TC.
Having considered the cassation appeal of the entrepreneur on these decisions, the Supreme Court fully satisfied it. The panel of judges of the Cassation Administrative Court noted that the time of claimant’s filing a lawsuit on debt collection as per Article 102 of CACP expired in 2012, and that is why the supervisory authority did not have rights in 2016 to apply to court with claims to collect the penalty, accrued for the amount of tax debt, paid upon expiration of a 1095-day period since it arose.
The Supreme Court came to conclusion that in case of expiration of 1095-day period since the tax debt arose, such debt is declared uncollectible and has to be written off, including penalties and fine sanctions; consequently, since then, the tax authority has no right to take any measures on collection of such amount of the debt.