Contesting Fines from Government Authorities
Fines imposed by government authorities can be significant and are often the result of inspections by regulatory bodies, such as the State Tax Service (STS), the State Labor Service, the State Inspection of Architecture and Urban Planning (SIAP) and other agencies. At the same time, not all sanctions are lawful, so they can and should be contested.
Grounds for Contesting Fines
A fine can be contested in cases of:
- Violation of the fine imposition procedure.
- Lack of legal grounds for the sanctions.
- Non-compliance of the decision with legal norms.
- Absence of proper evidence of the offense.
- Exceeding the statutory limitation periods for prosecution.
How to Contest a Fine: Two Approaches
A fine can be contested through administrative or judicial proceedings.
1. Administrative Appeal
This approach involves submitting a complaint to the authority that issued the fine.
Procedure:
- Complaint Preparation – the complaint must justify the violation, provide legal arguments, and include evidence.
- Complaint Submission – typically, the period for contesting is 10 or 30 days depending on the authority (according to Article 56 of the Tax Code of Ukraine, Article 188 of the Code of Ukraine on Administrative Offenses, etc.).
- Complaint Review – the authority must consider the appeal within the legally stipulated timeframe (usually 30 days).
- Outcome – the authority may either uphold the fine or cancel it.
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Advantages of Administrative Appeal:
- Lower financial costs compared to judicial proceedings.
- The possibility of quickly canceling the fine without court costs.
Disadvantages:
- A high likelihood that the decision will remain unchanged, as the same authority reviews its own decision.
2. Judicial Appeal
If the administrative appeal does not yield results, the fine can be contested in court.
Procedure:
- Lawsuit Preparation – the violation must be detailed, with reference to laws and evidence.
- Filing the Lawsuit – this is usually done at the district administrative court in the jurisdiction where the authority that imposed the fine is registered.
- Court Review – the court evaluates the evidence, hears the parties, and makes a decision.
- Appeal of the Decision – if there is disagreement with the decision of the first-instance court, it can be appealed through appellate and cassation procedures.
Judicial appeal allows for an independent review of the case, but it requires time and financial expenses (court fees, legal services).
Which Fines are Most Frequently Contested?
- Fines from the State Tax Service – for violations of tax legislation (e.g., incorrect VAT calculation).
- Fines from the State Labor Service – for unregistered workers, violations of labor law.
- Fines from the State Inspection of Architecture and Urban Planning – for unauthorized construction or violation of building codes (DBN).
- Fines from the Environmental Inspection – for violations of environmental protection legislation.
How to Increase Your Chances of a Successful Appeal?
- Submit the complaint or lawsuit on time (adhere to deadlines).
- Obtain a copy of the fine decision and analyze it in detail.
- Include all possible evidence (documents, testimonies, expert opinions).
- Utilize the services of professional lawyers for case preparation and representation.
Contact GlobalBud Ukraine
Contesting fines is an effective mechanism for protecting the rights of businesses and citizens. If a fine is imposed unlawfully, it is not worth paying it without a fight.
The specialists at GlobalBud Ukraine will assist you with a legal analysis of the situation, document preparation, and court representation. Contact us to protect your interests.
