«"The tax invoices were blocked - and there's been silence for the second month." "The inspector acts as if I'm already guilty of something, even though there's no report yet." "I wrote a complaint three weeks ago - no response.".
Sounds familiar? In over 20 years of auditing practice, I hear something similar from entrepreneurs and accountants almost every month.
In fact, there is a clear, legal algorithm for how to appeal the actions of the tax authority — and it is worth knowing it in advance, rather than googling it in a panic when the inspector is already standing over your soul. This article is a practical guide with links to regulations and real-life examples from practice.
Legal basis: where do these rights come from in the first place?
Article 19 of the Constitution of Ukraine establishes the basic principle: state authorities are obliged to act only on the basis, within the limits of their powers and in the manner provided for by the Constitution and laws. Any requirement of an inspector «beyond their powers» is in itself illegal.
Article 55 of the Constitution guarantees everyone the right to appeal in court the decisions, actions or inaction of state authorities. Together, these two articles are the foundation: first the principle of "acting only within the limits of the law", then the right to appeal it.
An important mirror image: the first part of Article 19 of the Constitution applies specifically to you — «no one may be forced to do anything not provided for by law.» If for government bodies only what is expressly provided for by law is permitted, then for you as a taxpayer, everything that is not expressly prohibited is permitted.
Separately — clause 56.21 of Article 56 of the Tax Code: if a norm of the Code allows for an ambiguous interpretation of the rights of the payer and the regulatory body — the decision is made in favor of the payer. If the norm is unclear, and the tax authority interprets it in its favor — the law is formally on your side. State this directly in the complaint.
In the field of taxation, Articles 55 and 56 of the Tax Code apply (current edition), which regulate the procedure for appealing decisions of regulatory bodies. But this article is about a narrower and less well-known issue: how to challenge the actions or inaction of a specific official, and not the decision on additional assessment itself. For this, there is Law No. 393/96-VR "On Citizens' Appeals" and the Procedure for Considering Appeals to the State Tax Service, approved by Order of the Ministry of Finance dated June 15, 2020 No. 297.
When can you appeal the actions of the tax authorities: three clear grounds
Clause 4 of Section I of the Procedure directly states: you can complain when the actions or inaction of a DPS employee led to one of three consequences:
- Your rights or legitimate interests have been violated. Example: registration of tax invoices in the Unified State Register of Taxes was blocked without legal grounds.
- Obstacles have been created to the exercise of rights. Example: the inspector refuses to accept documents or register your application.
- Illegally assigned duties or held accountable. Example: you were charged a penalty for allegedly late payment, even though you have a bank receipt for timely payment.
If you recognize your situation in at least one point, you have a legitimate reason to complain.
A complaint, a statement, or a proposal are not the same thing.
Article 3 of Law No. 393 divides appeals into three types:
- Offer — when you advise on improving the work of the body, without claiming infringement of rights.
- Statement — a request to exercise rights (for example, to provide clarification).
- Complaint — a demand to restore violated rights. This is the tool you need if the inspector's actions really hurt you.
Practical advice: write the word «complaint» directly in the text and clearly formulate the request: «I ask you to restore my rights by…» or «I ask you to bring the official to disciplinary responsibility.» Vague wording like «I ask you to figure it out» often receives a formal response.
Where to file a complaint about the actions of the tax authority
Part one of Article 16 of Law No. 393 defines the logic: a complaint is filed in the order of subordination — that is, to a higher authority or a higher official. You complain about the actions of a district tax inspector to the head of this authority or to the regional department of the State Tax Service.
It is definitely worth going to court if a higher-level administrative body no longer helps or you disagree with its decision. The judicial path is the Code of Administrative Procedure of Ukraine (clause 1, part 1, article 19 of the Code of Administrative Procedure of Ukraine).
Auditor's comment: I always advise clients to go through the administrative stage even when the chances seem slim. Firstly, it is almost free and fast. Secondly, the official response from the State Tax Service is ready-made evidence in the case if you have to go to court. Skipping this step is like throwing a free trump card up your sleeve.
Form of application: oral, written or electronic
Clause 4 of Section II of the Procedure allows for an appeal to be submitted individually or collectively. The form may be:
- Oral — through the contact center, hotline or at a personal appointment.
- Written — by mail, in person or through an authorized person.
- Electronic — via the Internet. A qualified electronic signature is not required: a scanned copy of the application with your signature and date is sufficient.
What must be included in the application
Paragraphs one, two, five and seven of clause 5, section II of the Procedure establish the mandatory details:
- surname, first name, patronymic and place of residence of the applicant;
- the essence of the question: what happened, when, who is to blame, what are you demanding;
- signature and date (for a written application);
- for electronic - email address or other contacts for response.
Example from practice: an entrepreneur wrote an emotional letter «The tax office is mocking you, do something!» without a name or address. The result was that the appeal was deemed anonymous and left without consideration (clause 17, section II of the Procedure). Before complaining about someone else’s negligence, make sure that your own document is flawless.
Deadlines: how much time do you have and how much does the tax office have?
Your deadline for filing a complaint (Article 17 of Law No. 393):
- 1 year from the date of the decision you are appealing;
- but no later than 1 month from the moment you learned about this decision.
The deadline for considering your tax application:
- regular application - up to 1 month from the date of receipt;
- application without the need for verification - immediately, but no later than 15 days;
- if additional verification is required, the period may be extended, but you must be notified in writing no later than one day before the end of the initial period;
- The maximum total period is 45 calendar days (clause 4, section IV of the Procedure). Any longer is a violation, and this is grounds for a new complaint of inaction.
An important nuance: deadlines are counted in calendar days, not working days (clause 1, section IV of the Procedure). If the last day of the deadline falls on a weekend, it is postponed to the first working day after.
About repeated complaints
If you have already received a substantive answer and are writing the same question a second time, such an appeal is not subject to consideration (paragraph 1, clause 19, section II of the Procedure). If the answer does not suit you, this is a reason to go higher up the hierarchy or to court, rather than writing the same letter again.
Step-by-step case: how to appeal the actions of the tax authorities in practice
Individual entrepreneur on a single tax, actual inspection. The inspector demands personal bank statements from the entrepreneur's card, which do not relate to entrepreneurial activity and are not included in the list of documents for this type of inspection. Threatens with an act of denial of admission.
- We record the violation in writing. We ask the inspector to justify the request with reference to a specific legal provision. This is the payer's right — and often this step resolves the issue.
- If the requirement remains illegal, we file a complaint. to the head of the tax authority in the order of subordination. We clearly indicate: what was demanded, when, on what grounds we consider it illegal, what specifically we are asking for.
- We are waiting for a response. within 15 days - 1 month.
- If the answer is unsubscribe or the violation continues — we appeal to the court under the CAS of Ukraine. In parallel, if necessary, to the Qualification and Disciplinary Commission regarding a specific inspector.
In this sequence, step by step. Panic and emotional letters in this process only harm.
Conclusions
Challenging the actions of the tax authority is not a «scandal for the sake of scandal,» but a legal, clearly regulated tool. The main thing is to adhere to the form (details, signature, date), deadlines (a month for filing, a month–45 days for a response) and the correct sequence (first vertically, then to the court). Anonymous and repeated appeals without new circumstances are wasted time. A properly drafted complaint the first time is the best strategy.
Need help appealing a tax audit or support during an audit?
The audit firm "ZEVS" has been supporting businesses in Ukraine for over 20 years on accounting, tax, labor and corporate law. If the tax office exceeds its authority, delays its response, or you are not sure how to file a complaint, contact us for advice. We will analyze your situation, prepare documents, and support you at all stages.
Author of the article: Anna Kletsova - certified auditor (since 2003), forensic tax expert (accredited by the Ministry of Justice since 2007), owner of the audit firm "ZEVS".