Legrant proved the unlawfulness of the special sanction application by the Ministry of Economic Development

October 15, 2020 · News

Legrant's lawyers protected the rights of a client to whom the Ministry of Economic Development, Trade and Agriculture of Ukraine unlawfully had applied a special sanction - an individual regime for licensing foreign economic activity.

STS (The State Tax Service) complained to the Ministry of Economic Development, Trade and Agriculture of Ukraine that the Legrant's client allegedly delayed the terms of payments under foreign economic contracts with a non-resident company amounting to the US $ 3.8 million what is causing of special sanctions in accordance with the Law of Ukraine "On Foreign Economic Activity". The STS referred to tax notification decisions based on an unscheduled on-site audit. As a result, despite that these decisions were reversed in court and the client notified the Ministry of Economic Development about this in due time, the special sanction - an individual regime for licensing of foreign economic activity - was unreasonably applied to the enterprise.

During the trial, Legrant's lawyers proved that information about the judicial abrogation of tax notices-decisions, as well as information from the servicing bank about the absence of violations the foreign economic activity law, were provided to the Ministry prior to the issuance of the controversial order to applicate the special sanction.

The court proceedings ended with the satisfaction of the claims by the court of appeal, whose decision was upheld by the Supreme Court.

In addition, the court pointed to the unlawful inaction of the Ministry of Economic Development regarding the company's repeated requests to withdraw the sanction.

The relevant case was handled by the Legrant's a senior lawyer Natalya Makovetskaya under general supervision of the managing partner Tatyana Titarenko.