Chiron Law Firm protected Client`s interests in a tax dispute

In its accounting the Client has made a decision on the recognition of doubtful debt. As a result, the Client increased the cost (which reduces the tax on profit) and simultaneously took into account tax differences (which increases the tax on income for the same amount).
As it often happens, the tax authority has recognized only the “half” of this transaction – the one that increased the tax. The second “half” tax authority did not recognize and accrued the tax on profit and penalties. “Grounds” were the following: the period of statute of limitations on actions expired, so it was necessary to recognize the doubtful debt earlier, and now it is too late.
After a lengthy trial, the court agreed with our argument that the statute of limitations had no effect: the Client has the right to admit doubtful debt both before and after the expiration of this term. As a result, the court abolished the tax notification-decision on the accrued tax on profit and penalties calculation of income.
Although the Client was convinced that his actions were lawful, but still there were doubts about the court`s solution. Previous experience of appealing to the State Tax authorities did not add credibility to state bodies. Therefore, the lawful and reasoned judgment was truly inspiring.