Subject of Dispute: Recognition as Unlawful and Cancellation of Tax Authority’s Requirement for Payment of Unified Social Contribution by an Individual Entrepreneur.
Main Arguments of the Court: The Supreme Court established that the plaintiff had actually ceased entrepreneurial activity back in 2000, but had not officially completed all legislative procedures for terminating entrepreneur status. The Court took into account that after the registration law came into effect in 2011, old registration certificates became invalid, and therefore the plaintiff could not be considered an active entrepreneur. The controlling authority unreasonably charged her unified social contribution for a period when she was not actually conducting economic activity.
Court Decision: The Supreme Court satisfied the cassation appeal, cancelled the appellate court’s decision, and upheld the first instance court’s decision recognizing the tax authority’s requirement as unlawful.
