How we reduced additional tax assessments from UAH 2.8 million to UAH 340,000 during a tax audit
For 3 years an IT company had cleared imports of server equipment and software licences on its own, without separating the goods and the licences in the customs declaration. The tax authority launched an audit. The risk of additional VAT and duty assessments was UAH 2.8 million. There was a threat of criminal proceedings for tax evasion.
We carried out a full compliance audit covering 3 years: we reviewed 340 customs declarations, identified a systematic error in the classification of software (code 8523 instead of 8524), prepared corrected calculations and voluntarily paid the arrears under the self-correction procedure without any penalties.
The additional assessment was reduced from UAH 2.8 million to UAH 340,000. No criminal proceedings were opened. The company introduced an internal procedure under which a BROER expert checks every declaration before it is filed.
"For three years we lived with a mistake and did not know it. BROER not only saved us from criminal liability, but also built a process so that it never happens again."— CFO of an IT company
