Here is the translation:
1. Subject of Dispute: Challenging tax notifications-decisions issued by the controlling authority regarding allegedly improper formation of expenses and tax credit by the taxpayer.
2. Key Arguments of the Court:
The court deviated from the previous position of the Supreme Court of Ukraine regarding the automatic invalidity of transactions with counterparties recognized as fictitious. In particular, the court noted that:
– The existence of a verdict on fictitious entrepreneurship does not automatically mean the invalidity of all economic transactions
– The taxpayer is not responsible for possible unlawful actions of counterparties
– Primary documents are valid if they reflect the actual movement of assets
– The controlling authority must prove the taxpayer’s intent
3. Court Decision: To leave unchanged the decisions of previous instances on cancellation of tax notifications-decisions, since the controlling authority did not prove the unreality of economic transactions.
