Subject of Dispute: Challenging Tax Notifications-Decisions and Actions of the Tax Authority Regarding Personal Income Tax on a Loan Forgiven by a Bank.
Main Arguments of the Court:
1. The tax authority violated the verification procedure, as it did not properly deliver the inspection order to the taxpayer at the actual address.
2. The exchange rate difference on a foreign currency loan, forgiven by the bank as a result of restructuring, is not considered an additional benefit and is not subject to taxation in accordance with the transitional provisions of the Tax Code.
3. In this case, the amount of the forgiven debt is less than the calculated exchange rate difference, therefore there are no grounds to consider it as additional income of an individual.
Court Decision: To uphold the resolution of the appellate administrative court on canceling tax notifications-decisions and recognizing the actions of the tax authority as unlawful.
