Subject of the dispute – challenging a tax notification-decision on additional VAT assessment for the farm enterprise “Alliance” for transactions with counterparties.
Main arguments of the court: the controlling authority considers the economic transactions to be fictitious, but the courts of previous instances did not conduct an in-depth analysis of the reality of these transactions. The Supreme Court drew attention that the courts need to verify: whether the goods/services were actually received, the technical capability of counterparties to perform deliveries, their availability of resources and personnel, the mechanism of conducting economic activity.
The court decided to cancel the previous court decisions and send the case for a new review to clarify all circumstances in detail.
