On February 11, 2010, representatives of KM Partners
law firm participated in the meeting held at National Electricity
Regulation Commission of Ukraine and devoted to issues concerning
lawfulness of deduction for the profit tax purposes of abnormal
losses of electricity by energy supply companies. The meeting was
organized by the Ukrainian Energy Association, A.E.S. Kyivoblenergo
the Donbass Fuel and Energy Company. The majority of Ukrainian
energy supply companies working by fixed tariff participated in the
meeting.
During the meeting there were discussed the peculiarities of
legal disputes between companies and tax authorities regarding the
taxation of so-called "out of balance" of the electricity
expenditures; there were given arguments that, despite the negative
practice of the Supreme Court of Ukraine on the subject, can be
used to defend the right of deduction of the entire volumes of
purchased electricity for the profit tax purposes.
Among the participants of the meeting there were also
representatives of the National Electricity Regulation Commission
of Ukraine, the Verkhovna Rada Committee on Fuel and Energy
Complex, "Energy Company of Ukraine", energy distribution
companies and experts in tax law.
KM Partners was presented by two speakers - Alexander
Minin, senior partner, and Alexander Shemiatkin, partner. There
was enlightened the positive experience of the firm in similar
cases and were given recommendations to refute the arguments
of tax authorities regarding the taxation of abnormal losses of
energy during its transportation.
The text of the recommendations of the KM Partners
law firm can be found below:
Download pdf-file (290 KB)
Speakers also pointed out that similar arguments were displayed
in the decision dated September 17, 2009 by Kyiv Appeal
Administrative Court in the case # 22-a-20734/08. The text of the
regulations can be found below:
Download pdf-file of court decision (762 KB)
