Subject of the dispute is challenging a tax notification-decision on accrual of penalties for violation of settlement terms in foreign economic activity during goods import. The court concluded that the tax authority incorrectly determined the day of debt occurrence for penalty calculation. Specifically, the day of debt occurrence in import operations is the day when the resident makes an advance payment, not the first day after the expiration of settlement deadlines. Accordingly, to convert the amount from foreign currency to national currency, the NBU exchange rate on the payment day should be applied, not on the day of delay.
The Supreme Court cancelled the appellate court’s decision and referred the case for a new review to establish the correct currency exchange rate and recalculate the penalty amount.
