Tax on expensive autos: to be or not to be?
As you know, on the 28th of December 2014 the Law of Ukraine “About making changes in the Tax Code of Ukraine and some legislative acts of Ukraine regarding the tax reformation” came into force. It introduces the tax on the automobiles which were in use for less than 5 years and have the motor volume of more than 3000 cubic cm – for gasoline motors; 2500 cubic cm – for diesel-powered aggregates to the value of about UAH 25 000. The tax on expensive autos was brought into force by Decision of the Kiev City Council (KCС – Defensor).
A group of individuals (hereinafter referred to as – Claimants) decided to appeal to the court for defence of their rights and interests considering that their constitutional rights, as citizens of Ukraine, are roughly violated by the Decision taken in KCС concerning the part of the Regulation on transport tax adopted by the Decision.
With the aim of provision of the qualified representation, Claimants addressed to ООО Law Company Colares (hereinafter referred to as – Legal firm). The specialists of Legal firm established a conception of the representation and a suit to the Kiev county administrative court was drafted to the basis of which they put appealing of the violation of the stability principle and the principle of non-discrimination by Defensor.
By Decision of 03.11.2015, the judge of the Kiev county administrative court Arsirii R.A. opened proceedings on the case and nominated the case to consideration.
Several times consideration of the case was put on hold and shifted because of non-performance of the provision of Item 3 (three), the Second Part of Article 171 of the Administrative Procedure Code, by Defensor, and finally, on 14.06.2016 consideration of the case on merits was accomplished.
By Decision of 14.06.2016 the judge of the Kiev county administrative court Arsirii R.A. moved the process into a written proceeding with the goal of examination of evidences and arguments of the sides, giving them a proper estimation and taking decisions on the merits of the case.
The causes of moving the case into a written proceeding may be different, but factually, this is again heeldragging. And, this is hardly surprising, considering the fact that the tax inspection will have to return UAH 25 000 to every car owner who paid an unlawful auto tax in 2015.
We’ll keep an ear to the ground and don’t forget that a timely attraction of the specialists may minimize your expenses.
Respectfully yours, the team of Law Company Colares (ЮК «Коларес»).