January 25, 2019
has successfully defended interests of “Mondelez Ukraine”, a Ukrainian company belonging to the international group of companies Mondelez International, the world’s largest manufacturer of chocolate products, cookies and sweets, in a dispute with the Office of Large Taxpayers of the State Fiscal Service concerning application of the code of the Ukrainian classification of foreign economic goods (UKTZED) within packaging equipment classification. Consequently, managed to cancel tax accruals within administrative appeal procedure in the State Fiscal Service of Ukraine.
In particular, the dispute concerned the UKTZED code, which was determined by “Mondelez Ukraine” when importing packaging equipment for cookies to the customs territory of Ukraine. Within the post-audit the Office of Large Taxpayers of the SFS did not agree with the UKTZED code 8422 40 00 90 (other packaging and wrapping equipment), determined by “Mondelez Ukraine” in the customs declaration, and applied another UKTZED code 8422 30 00 99 (equipment for filling, bottle and tin can capping, shutting, sealing, plumbing, labeling of boxes, bags or other containers; equipment for bottle, tin can, tube and other similar container sealing; carbonation equipment), that resulted in accruals of VAT and import duty obligations to “Mondelez Ukraine”.
In order to protect interests of “Mondelez Ukraine” specialists elaborated a comprehensive defense strategy and legal position redarding correct determination of the UKTZED code proceeding from legal and technical aspects of special equipment characteristics. Respective aspects were covered in a complaint to the SFS, drafted by specialists, as well as within consideration of a complaint in the State Fiscal Service of Ukraine, where team represented interests of “Mondelez Ukraine”.
Consequently, a complaint of “Mondelez Ukraine” was satisfied and tax accruals were canceled in full by the State Fiscal Service of Ukraine. Besides, these results are noteworthy not only due to the fact that application of the UKTZED code by the taxpayer was approved, but due to the fact that the State Fiscal Service of Ukraine quite rarely approves the taxpayer’s position (for instance, according to the data available at the official web-site of the State Fiscal Service of Ukraine such approval happened to be only in 12,4% of events1 as of December 01, 2018).
Representation of “Mondelez Ukraine” interests within administrative appeal procedure was performed by team, in particular by partner Ivan Shynkarenko and Of Counsel Mariia Kozlenko, being led by Senior Partner Alexander Minin.
1Of 21 481 of appealed tax notification-decisions only 2 672 tax notification-decisions were canceled.