Subject of Dispute: Challenging a Tax Notification-Decision on Additional Accrual of Corporate Income Tax and VAT for Transactions with Counterparty LLC “Progress Resource Group”.
Main Arguments of the Court:
1. The Supreme Court deviated from the previous position that an enterprise with signs of fictitiousness is automatically deprived of the right to business transactions.
2. The existence of a conviction against the counterparty’s director is not an indisputable proof of the unreality of business transactions.
3. The court must comprehensively investigate primary documents, asset movement, and the reality of business activity.
Court Decision: To cancel previous court decisions and refer the case for a new review to the court of first instance for a detailed examination of all circumstances of the case.
