Sergey Tarasevich has commented to Dairy News on the potential consequences of the Perm dairy plant losing the dispute with the Federal Tax Service

The Seventeenth Court of Appeal did not satisfy the appeal of  Yugoslavskiy  Kombinat Molochnikh Productov (Yugovskaya Kombinat Dairy Products) LLC against the decision of the first instance, which recognised the actions of the Federal Tax Service in imposing additional charges of RUB 110 mn on the company as lawful. In the opinion of the tax authority, Yugoslavskiy  Kombinat Molochnikh Productov (Yugovskaya Kombinat Dairy Products) LLC unlawfully applied a preferential VAT rate of 10% as a dairy producer, while producing two types of rennet products, which cannot be classified as dairy products, and the VAT rate for the plant should be calculated at 20%. The management of  Yugoslavskiy  Kombinat Molochnikh Productov (Yugovskaya Kombinat Dairy Products) LLC disagreed with the conclusions of the courts of first and second instance, pointing out that these decisions may create risks for many enterprises in the dairy industry.

“It is too early to say that the appeal instance decision will set a precedent, as there is still cassation ahead,” Sergey Tarasevich, Associate of Tax & Administrative Law Practice at Maxima Legal, suggested. “But of course, the tax authority will refer to the ruling in further consideration of similar cases. Especially in the Perm region. Therefore, the fears of industry dairy farmers are fully justified,” the expert explained to Dairy News.

To read the full article (in Russian), please, see Dairy News website >>>>