How to Appeal a Tax Audit Report: Step-by-Step Guide and Legal Advice

Tax audits have become a common yet stressful reality for Ukrainian businesses. Under the current fiscal scrutiny, every audit report can lead to financial consequences — from additional tax assessments to administrative sanctions. However, this is not a final verdict. The law provides taxpayers with a clear right to challenge the conclusions of the tax authorities.

What is a Tax Audit Report and Why It Matters

A tax audit report is an official document that records the results of an inspection conducted by the tax authority. It may serve as the basis for additional tax assessments, penalties, or even criminal proceedings. At the same time, it is not a final decision. If you disagree with the inspectors’ findings, you have the right to file objections — and this is the first step in protecting your business.

Deadlines and Procedure for Filing Objections

According to paragraph 86.7 of Article 86 of the Tax Code, a taxpayer has 10 business days from the date of receiving the audit report to submit objections. This timeframe is critical: if the objections are filed late, the tax authority may lawfully ignore them. Lawyers recommend starting preparation immediately after receiving the report. Along with the objections, it is advisable to submit copies of supporting documents — especially those that were not provided earlier — within three business days after receiving the report.

Once objections are submitted, the tax authority’s review commission is formed to consider the materials within 10 business days. Based on the results, the taxpayer receives a written response as per Article 42 of the Tax Code — either by mail or electronically through the taxpayer’s online cabinet. If the commission deems further examination necessary, a supplementary documentary audit may be scheduled, suspending the review process until its completion.

How to Properly Prepare Objections

Your objections must be comprehensive and well-reasoned. They should include:

1. Factual details — any points in the report that were incorrectly or unlawfully stated.
2. Legal reasoning — references to the Tax Code, relevant laws, government regulations, or court practice supporting your position.
3. Documentary evidence — contracts, bank statements, invoices, accounting records, or counterparty explanations confirming the correctness of your actions.
4. A request for personal participation during the review (subparagraph 86.7.3 of the Tax Code) — either in person or via video conference.

How Long the Review Takes

The total time for considering objections should not exceed 15 business days:

• 10 days — for review by the commission;
• up to 5 days — for signing and sending the taxpayer a tax notice-decision (if one is issued).

If the audit serves as the basis for an unscheduled inspection, the timeline may be extended slightly, but the tax authority is still required to provide a reasoned written response.

Step-by-Step Algorithm for Taxpayers

1. Receive the tax audit report and carefully analyze its content.
2. Prepare objections within 10 business days.
3. Collect all supporting and new evidence.
4. Submit objections — personally, via representative, or by registered mail.
5. Participate in the commission’s review.
6. Obtain the official written response.
7. If the decision is unfavorable — file an appeal to the higher tax authority or bring the case to court.

Legal Advice

Don’t treat objections as a mere formality. This is an effective legal mechanism that often helps avoid lengthy litigation. Experience shows that well-prepared objections can change the tax authority’s position, reduce additional charges, or even eliminate them entirely. If you lack experience in tax disputes, consider involving a qualified tax lawyer. A specialist will help you structure arguments, prepare documents properly, and defend your business interests professionally.

Conclusion: Appealing a tax audit report is a right every business should exercise. The key is to act promptly, document everything thoroughly, and follow the proper legal procedure. Remember: well-prepared objections are not just protection against penalties — they are a statement of your business’s lawfulness and professionalism.