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The tax practice of Prime Advice achieved a decision in favor of the client in the court of appeal and defended it in cassation

The dispute arose in respect of VAT on construction works of a preparatory nature in the amount of 11 million rubles. The company had not quite standard circumstances: the object under construction was changed and the land plot under construction was divided. The inspection predictably applied a purely formal approach to the assessment of the preparatory work: after all, the actually constructed object did not correspond to the object that appeared in the documents before the change in the concept, and the land plot determined by the cadastral number ceased to exist.

Prime Advice started to accompany the dispute, beginning with the judicial stage. In the appeal, the company's position was accepted, and the cassation (Arbitration Court of the North-Western District) confirmed the correctness of the company.

Vladimir Amelchuk, Head of Tax Practice at Prime Advice:

At all stages of the pre-trial (administrative) procedure, and in the court of first instance, the reasoning was based only on a formal assessment of the circumstances. The economic content of the operations was not refuted for reasons, but simply ignored. It was only in the Court of Appeal that our arguments were heard and formed the basis of the decision.

Arguing in the courts with the tax authorities has become really difficult lately. The decision in favor of the taxpayer is therefore particularly valuable for us.

Link to the case