The Presidium of the Supreme Arbitration Court (SAC) has recognized the legitimacy of the repeated tax check on Dirol Cadbury, which was conducted by MIFNS-9 Inspectorate of Federal Tax Service (FTS) in charge of the Novgorod Region after the company submitted a reviewed tax declaration after the completion of the first check. Thus, the court upheld the plaintiff’s petition and voided the lower courts’ rulings.
This dispute, according to court data, began when MIFNS-9 after its first tax inspection of the company in 2006-07 found some irregularities that called for tax liability. However, before it could file the liability case, Dirol submitted a new declaration on profit tax, where its expenses had been increased by 280mln rubles, an action did not lead to a corresponding reduction in the company’s taxable base, but also prompted MIFNS-9 to embark onanother inspection.
Both parties challenged one another’s actions in different courts with alternating successes, till the 14-th Arbitration Appeals Court ruled in favor of Dirol, declaring the tax agency’s decision on repeated check illegal. When all its petitions were turned down by subsequent courts, the agency then applied to SAC with a request to review the case within its oversight jurisdiction. The SAC, after considering all the circumstances of the case, declared the tax agency’s actionslegal, and thus voided all the lower courts’ resolutions in Dirol’s favor.
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