On March 30, 2016 in the Central Department of the State Fiscal Service of Ukraine a reconsideration of the administrative complaints of “Savik Shuster Studio” LLC on tax notices-decisions handed down in 2015 took place
Lawyers of the International Legal Center EUCON, who represent the interests of the complainant, announced the offences committed by the State Fiscal Service of Ukraine officials of different levels, which resulted in forming of irregular legal position and calls into question the legality of the inspection as a whole.
In particular, Yaroslav Romanchuk, attorney, drew attention to the promptness in approving the inspection schedules of “Savik Shuster Studio”. The tax authorities starting from the district level up to the central office agreed inclusion of the taxpayer into the inspection schedule within one day only that questions the legality of such inspection.
Eleven petitions were filed along with the complaint, regarding the involvement to the proceeding of officials who upheld the contested tax notice-decision, officials who made the decision on the administrative complaint at the Central Department of the State Fiscal Service of Ukraine, and others. But all of the petitions were left without consideration. Yevhen Petrenko, attorney, asked the State Fiscal Service representatives regarding the result of the assessment of complaints on illegal inspection data transfer to the Investigation Department in order to initiate the criminal proceeding, and drew attention of the Department Director to the decision of the Pechersk District Court obliging the Prosecutor General’s Office to initiate the investigation of the tax authorities’ illegal actions.
In addition, according to the current legislation, decision on the administrative complaint must be made by the Head of the State Fiscal Service of Ukraine or his deputy, who were absent on the day.
Following the review of the complaint and taking into account the extension of its consideration terms, Yaroslav Romanchuk made an application on postponement of the case review, establishment of a working group chaired by an authorized person of the State Fiscal Service of Ukraine who makes the final decision, and involvement of the State Tax Inspectorate of Pechersk District of Kyiv and the Center Department of the State Fiscal Service of Ukraine representatives to the next meetings.
On February 29, 2016, having considered the claim filed by attorneys Yaroslav Romanchuk and Yevhen Petrenko on inaction of the General Prosecutor of Ukraine which consists in non-inclusion of records to the Unified Register of Pre-trial Investigations, Kyiv Pechersk District Court sustained the claim and ordered the public prosecution to record the statement of criminal offence and start the pre-trial investigation.
Back on February 17, 2016, the attorneys notified the Prosecutor General of the criminal offense commited by the State Tax Inspectorate of Center Department of the State Fiscal Service in Kyiv during the inspection of Savik Shuster Studio.
Instead of including the records to the Unified Register of Pre-trial Investigations, as provided by Article 214 of the Criminal Procedure Code of Ukraine, the prosecuting authority redirected the consideration of this issue to the Prosecutor’s Office in Kyiv.
Moreover, the covering letter indicated an appeal of the applicant, not a report of a crime.
On March 25, 2016 International Legal Center EUCON received a notice from the Prosecutor General’s Office of Ukraine regarding execution of the Pechersk District Court decision and start of a criminal proceeding against the Tax Inspectorate’s actions during the inspection of “Savik Shuster Studio” LLC. Conducting a pre-trial investigation was entrusted to the prosecutor’s office in Kyiv. Execution of the decision took 23 days.
At the request of the International Legal Center EUCON to the State Fiscal Service of Ukraine bodies of various levels to provide information regarding the method and basis in which the inspection of “Savik Shuster Studio” LLC was conducted, it became possible to get a respond only after the appeal to the Ukrainian Parliament Commissioner for Human Rights who provides parliamentary oversight of public information provision. Failure of the State Fiscal Service officials to provide information in accordance with the law has led to opening of the proceeding.
Analysis of the obtained information regarding the methods and basis of the inspection proved that the inspection was carried out in illegal way.
Comment of Savik Shuster’s attorney, managing partner of the International Legal Center EUCON Yaroslav Romanchuk regarding the case:
As it was mentioned by Savik Shuster before, he entrusted the International Legal Center EUCON to represent his interests in both administrative dispute and criminal proceedings.