Subject of Dispute: Challenging a Tax Notification-Decision on Additional Accrual of Value Added Tax.
Main Arguments of the Court:
1. The courts of previous instances did not conduct a comprehensive analysis of primary documents and circumstances of economic transactions, focusing only on formal signs (presence of criminal proceedings, lack of labor resources among contractors).
2. The Supreme Court emphasized that the mere fact of criminal proceedings against a contractor cannot automatically indicate the unreality of the taxpayer’s economic transactions.
3. The courts should have thoroughly examined the nature of the violations, evaluated primary documents, established the economic purpose of the agreements, and considered the arguments of the enterprise.
Court Decision: To cancel the decisions of previous judicial instances and close the proceedings in the case due to the liquidation of the enterprise.
