The SFS fined Triolan.Mani for UAH 3.7 billion, the court refused to cancel the fine

Все про економіку та фінанси

On September 9, the District Administrative Court of Kyiv refused to satisfy the claim of Triolan.Money LLC to the Head Office of the Department of State Fiscal Service in Kyiv (in the case No. 640/6511/19) on cancellation of the tax notification-decision No. 0016951409 dd. 05.04.2019, which imposed a fine of UAH 3.7 billion on the plaintiff for violation of the Regulation on cash operations in the national currency.

According to court materials, the plaintiff company transferred funds in the national currency through self-service software and hardware complexes without the use of payment transactions recorders.

According to the results of the tax audit conducted on March 1, 2019, it was established that in the period from January 1, 2016 to February 22, 2019 234 relevant self-service machine were used, the volume of cash acceptance operations amounted to UAH 738.6 million. Although cash was delivered to the bank, however, "it is not reflected in the cash book, the cash receipts and expenditure vouchers for the above amount were not summed up and, as a consequence, the amount of cash was not recorded" (quote).

Taking this into account, on the basis of the Presidential Decree "On the application of penalties for violation of the norms on regulation of cash circulation" (was abolished in June 2019 - ed.), the fiscal authorities imposed a fine of UAH 3.7 billion on Triolan.Money LLC.

The Court stated that, according to the Law "On the application of the payment transactions recorders in the sphere of trade, public catering and services", in the provision of relevant financial services, the payment transactions recorders must be used, and, accordingly, there was a "violation by the plaintiff`s enterprise of the procedure for performing settlement operations". (quote)

Triolan.Mani LLC pointed out that neither the Law "On Payment Systems and Funds Transfers in Ukraine", nor the Regulation on the Procedure of Issuance of a License to Non-Banking Financial Institutions to Transfer Funds in the National Currency without Opening Accounts, approved by the Resolution of the NBU Board No. 80 dd. 17.08.2017, contain no requirements for the application of the payment transactions recorders in the implementation of funds transfer activities.

However, the court did not accept this argument, since "these legal acts regulate quite different legal relations, in particular, those arising in the field of non-banking financial activity and do not affect in any way the regulation of legal relations regarding the tax accounting of the turnover of funds". (quote)

"The plaintiff was obliged to keep track of the cash in the cash book for the full amount of its actual receipts (before the self-service machines) on the basis of incoming cash orders, which the plaintiff failed to do at his own discretion," the court stressed.

According to the State Register, the founders of Triolan.Mani LLC are Serhii Mishchenko and Svitlana Ostapenko.