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Ukraine State Enforcement Service suspends collection of UAH 400 mln of tax debt for 1998 from Kharkiv Tractor Plant

Ukraine State Enforcement Service suspends collection of UAH 400 mln of tax debt for 1998 from Kharkiv Tractor PlantThe enforcement department of the State Enforcement Service of the Justice Ministry of Ukraine on August 16 suspended the execution of a decision to collect UAH 400.98 million of debt from public joint-stock company Kharkiv Tractor Plant in favor of the Specialized Tax Inspectorate for servicing large taxpayers in Kharkiv.

"The execution of the decision was suspended under a ruling of the business court of Kharkiv region dated July 14, 2016 on the approval of the pretrial readjustment plan by the plant that introduces a moratorium on satisfying claims of creditors (including the Specialized Tax Inspectorate) appeared before the approval of the plan," lawyer of the plant Andriy Khoryzhko told.

He said that the debt appeared as the plant did not fulfill its liabilities under a government-secured credit issued in1998.

"However, the Kharkiv Tractor Plant opposes groundless collection of expenses that the state did not face in fact in favor of the state and their double collection," Khoryzhko said.

He said that the debt was twice collected from the plant. First, it was collected via admitting claims of the Specialized Tax Inspectorate in a ruling of the higher business court of Ukraine dated August 10, 2010 as part of the bankruptcy case in the amount of UAH 158.41 million or EUR 16.05 million. Repeatedly it was collected under a ruling of Kharkiv administrative court of appeals on December 8, 2015. At the moment when the ruling was issued in the hryvnia equivalent the sum of EUR 16.05 was UAH 400.98 million.
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