Actions or Inaction of the Tax Authorities: Your Legal Tools of Influence

In the course of doing business, entrepreneurs and sole proprietors often face not only actions but also inaction by tax authorities, which may negatively affect their operations. Refusal to register tax invoices, delays in reviewing complaints, untimely responses, or complete disregard of requests are all examples of inaction that may be challenged legally. In this article, we explain how businesses can protect their rights if the tax authorities act unlawfully or fail to fulfill their obligations.

1. What Actions or Inaction Can Be Challenged?

Ukrainian law clearly defines situations in which taxpayers have the right to challenge the actions or inaction of tax authorities. The most common cases include:

• refusal to register tax invoices;
• failure to provide administrative services within the established deadlines (registration, VAT cancellation, etc.);
• delayed refund of overpaid or mistakenly paid taxes;
• delays in reviewing complaints or requests;
• unlawful demands for documents not required by legislation.

2. Mechanisms for Protecting Your Rights

Administrative Appeal

The first stage of protection is filing a complaint with a higher-level tax authority regarding the actions or inaction of a tax office. The law grants taxpayers the right to appeal decisions or actions within 10 business days from the date of receipt or from the moment the taxpayer became aware of the inaction.

Judicial Appeal

If the administrative appeal does not produce results or the situation requires urgent action, the taxpayer has the right to apply to court. Courts often side with taxpayers if violations of procedures, deadlines, or substantive legal norms are proven.

3. Practical Advice from Lawyers

• Keep records of all requests and responses: save copies of correspondence with tax authorities, complaints, requests, and proof of receipt.
• Observe deadlines carefully: timely appeals are a key factor in protecting your rights.
• Involve a lawyer: legal counsel will help properly prepare documents, justify your position, and represent you before tax authorities or in court.
• Use the right to an attorney’s request: if the tax authority fails to respond, a lawyer may send an official request, and the authority will have a legal obligation to reply.
• Do not remain silent: inaction by tax authorities should not be ignored — it is not merely an inconvenience but a violation of your rights.

Tax authorities are not above the law, and their actions or inaction may and should be challenged. Ukrainian legislation provides businesses with clear legal tools to defend their rights. The key is to react promptly and act within the legal framework. The Ukrainian Bar and Real Estate Association is ready to provide legal support in even the most complex disputes with tax authorities — from preparing complaints to representing your interests in court.