1. The subject of the dispute is the appeal of the tax notice-decision by which the Company’s amount of negative value of value-added tax was reduced due to the fictitious nature of economic transactions with the counterparty.
2. The court of cassation instance, satisfying the cassation appeal, noted that the Company provided properly executed primary documents confirming the reality of economic transactions with the counterparty, and the controlling body did not prove circumstances that would indicate the bad faith of the taxpayer or his awareness of the illegal activities of the counterparty. The court also took into account that the lack of sufficient resources of the counterparty is not an unconditional basis for recognizing transactions as unreal, and the materials of the criminal proceedings without a court verdict cannot be proper evidence. The court deviated from the conclusion of the Supreme Court of Ukraine, stated in the resolution of December 1, 2015, in case No. 826/15034/17, regarding the incompatibility of the status of a fictitious enterprise with legal activity.
3. The court of cassation instance overturned the decision of the appellate court and upheld the decision of the court of first instance to satisfy the Company’s claim.
