Tax Administration in Donetsk v. VAT “Philip Morris Ukraine”
The Tax Administration in Donetsk discovered that a tobacco company, Philip Morris Ukraine, had failed to report its storage of over 9 million dollars USD worth of items. The Tax Administration alleged that the unreported storage violated the relevant tobacco control law and sought a financial penalty of the same amount. The defendant appealed the sanctions to the Kharkiv District Administrative Court, which found that the Tax Administration had fully demonstrated a violation of the law. Accordingly, the Administrative Court ordered payment in the amount requested to the State Budget of Ukraine.