Mykolaiv region agricultural company pays almost ₴70 million in tax debt

An agricultural enterprise in Mykolaiv region has paid almost ₴70 million in tax debt. Archive photo: NikVesti

An agricultural enterprise from Mykolaiv region was underpaying taxes. In particular, both income tax and VAT. After the audit, the company admitted the violation and paid 69.8 million hryvnias to the state budget.

This was reported by the regional office of the State Tax Service.

The tax authorities found that the understatement of income tax was due to overstatement of expenses, in particular due to

• VAT on tax invoices whose registration has been suspended, as well as VAT on goods and services not related to business activities, were included in operating expenses;

• creating provisions for VAT not supported by primary documents in connection with legal disputes;

• Failure to recognise fines, penalties, forfeitures and provisions for doubtful debts in the financial statements as required by accounting standards.

In addition, the tax authorities found VAT understatement due to overstatement of the tax credit on transactions with a risky counterparty that did not actually conduct business, as well as errors in the reporting.

After the audit, the company agreed with the tax authorities' conclusions and paid the accrued debt in full.

Earlier it was reported that in January-August this year, entrepreneurs in Mykolaiv region paid 768.2 million hryvnias in land tax and land lease payments to local budgets.