The inspection body initiated an on-site audit of a company. Dissatisfied with this decision, the organization filed a complaint with a higher authority, which was subsequently rejected.
Believing its rights were violated, the taxpayer filed a lawsuit seeking to invalidate the tax authority’s decision.
The court of first instance upheld the plaintiff’s claims. It overturned the tax authority’s decision, reasoning that at the time the decision was made, the company met all criteria established by Russian Government Decree No. 1874 of October 20, 2022. Additionally, it considered that the company’s sole founder and head had been mobilized and dispatched for military service.
However, the appellate court reversed this decision and denied the plaintiff’s claim. The appellate court concluded that it was documented that the nominal head had no connection to the company’s activities. Furthermore, the serviceman denied his involvement in the organization’s work, having become its founder and head only during the course of his military service, after being mobilized.
The cassation court affirmed the appellate court’s findings, leaving its decision in force.