Objections to a tax audit report: how to protect the business before a tax assessment notice

Receiving a tax audit report does not yet mean that a company or a sole proprietor (FOP) has to pay the additional taxes and fines. The report records the inspectors’ position, while a monetary obligation arises from a tax assessment notice (podatkove povidomlennia-rishennia, PPR).

Before the PPR is issued, the taxpayer can file objections, provide documents and explain circumstances the tax authority did not take into account. In practice this is the first full stage of defence after an audit.

How an audit report differs from a tax assessment notice

In the report the tax authority describes the facts it has established, sets out calculations and states its conclusions on possible violations.

The report itself:

• does not create a tax debt;
• does not require the amounts to be paid immediately;
• is not a tax assessment notice;
• gives the taxpayer the right to file objections and additional documents.

In its case law the Supreme Court proceeds from the position that an audit report does not in itself create legal consequences for the taxpayer: rights and obligations arise, change or end only after a decision of the tax authority.

That is why in court it is usually the PPR issued on the basis of the report that is challenged, not the report itself. Still, errors and unfounded conclusions in the report should be rebutted straight away, through objections.

Should you sign the report?

Signing the report does not mean agreeing with its conclusions. The taxpayer may read the document and sign it with a reservation.

You can write:

“We disagree with the conclusions of the audit report. Objections, explanations and additional documents will be submitted within the time limit set by the Tax Code of Ukraine.”

The right to sign the report with a reservation and file written objections is provided by subparagraph 17.1.6 of the Tax Code of Ukraine.

Refusing to sign or receive the report does not make the audit results disappear. The inspectors will draw up a report on the refusal (paragraph 86.3 of the Tax Code) and send a copy of the audit report in the manner set out in Article 42. The deadline for objections will still run from the statutory date of delivery.

Deadline for objections

Objections, explanations and additional documents are filed within 10 business days from the day following receipt of the audit report (paragraph 86.7 of the Tax Code).

For example, if the report was received on a Monday, the count starts on Tuesday. Business days count, not calendar days.

Objections are filed with the tax authority that carried out the audit. They become an integral part of the audit materials.

For a report on an unscheduled audit carried out under subparagraph 78.1.5 of the Tax Code to examine circumstances from earlier objections or a complaint, the deadline is shorter: five business days (subpara. 86.7.4). Such objections are not reviewed separately but are added to the materials.

How to file objections

Objections can be filed:

• in person with the tax authority, with a receipt stamp on your copy;
• by registered or declared-value post with a list of contents;
• through the taxpayer’s Electronic Cabinet;
• through an authorised representative.

Keep proof of filing: the office stamp, postal receipt, list of contents or electronic receipt.

In the list of contents, it is best to list the letter of objections and each attachment or properly grouped sets of documents.

What to check in the report

Before writing objections, break the report down into individual violations and analyse each one.

Check:

1. Whether the STS had a lawful ground for the audit.
2. Whether the order and assignment meet the requirements of the Tax Code.
3. Whether the inspectors went beyond the subject and period of the audit.
4. Which documents the conclusions are based on.
5. Whether the documents provided by the taxpayer were taken into account.
6. Whether the law was applied correctly.
7. Whether tax periods, the tax base and the amounts were determined correctly.
8. Whether fault was proven, where it is a mandatory condition of financial liability.
9. Whether mitigating or exculpatory circumstances were considered.
10. Whether the conclusions rest only on assumptions or information about a counterparty.

In September 2026 the Supreme Court published a review of the Administrative Cassation Court’s case law on procedural violations in tax audits (decisions from 2018 to August 2026). Among other things, it covers the taxpayer’s right to have primary documents filed with objections taken into account, the procedure for reviewing objections and the consequences of procedural violations by the tax authority.

How to draft objections

There is no universal template: the content depends on the type of audit and the violations found. But a clear structure helps.

1. Introduction

State:

• the name of the tax authority;
• the taxpayer’s details;
• the number and date of the report;
• the type of audit;
• the period audited;
• the date the report was received.

2. General position

Briefly state which conclusions the taxpayer disagrees with: in full or in part.

Saying “the conclusions of the report are unlawful” is not enough. Explain exactly where the error lies.

3. Objections to each violation

It is best to deal with each episode in a separate section:

• what the STS claims;
• which provision the conclusion is based on;
• why it is wrong;
• which documents support the taxpayer’s position;
• what the correct calculation should be.

If the report covers several taxes, counterparties or periods, do not mix the arguments in one block.

4. Procedural violations

Describe separately any violations in ordering and conducting the audit. For example:

• improper notification of the taxpayer;
• no statutory ground;
• going beyond the subject of the audit;
• breach of deadlines;
• requests not made or improperly drawn up;
• documents handed over but ignored;
• no list of copies received;
• no report drawn up on a refusal to provide documents.

How the handover of documents should be recorded is explained in our article on failure to provide documents during a tax audit. Types of audits and the documents required to admit inspectors are covered in our article on tax audits in Ukraine in 2026.

5. Evidence

You can attach to the objections:

• contracts and supplementary agreements;
• invoices and payment documents;
• delivery notes and VAT invoices;
• acts of acceptance for work;
• consignment notes;
• bank statements;
• accounting registers;
• documents on staff, warehouses and production resources;
• correspondence with counterparties;
• certificates and technical documentation;
• tax and penalty calculations;
• evidence that documents were handed over during the audit.

Organise and number the copies and include them in a list of attachments. References in the text should point to a specific document and page, not to a general folder of primary documents.

6. The taxpayer’s requests

At the end it is advisable to ask the tax authority to:

• take the explanations and attached evidence into account;
• remove unfounded conclusions from the audit materials;
• not issue a PPR on the relevant episodes;
• review the objections with the participation of the taxpayer or its representative;
• notify the date, time and manner of the review;
• provide a written reply.

Taking part in the review

State expressly in the objections that you wish to take part in the review: in person, through a representative or by video conference (subpara. 86.7.3 of the Tax Code).

The STS must notify the date, time and place or manner of the review within two business days of receiving the objections, but no later than four business days before the hearing (subpara. 86.7.2 of the Tax Code).

At the review the taxpayer or representative may give oral explanations, answer questions and draw the commission’s attention to specific documents. If a duly notified taxpayer does not attend, the review still goes ahead.

When the STS must reply

The tax authority’s commission reviews the materials within 10 business days following receipt of the objections (subpara. 86.7.1 of the Tax Code). It then draws up a conclusion and sends the taxpayer a written reply.

If the objections contain new circumstances that were not examined during the audit and cannot be objectively assessed without further checks, the STS may order an unscheduled documentary audit under subparagraph 78.1.5 of the Tax Code. Its subject is limited to the issues raised in the objections.

On the basis of the commission’s conclusion, a PPR may be issued within five business days after the conclusion is adopted and the written reply is sent to the taxpayer (subpara. 86.7.5 of the Tax Code).

Typical mistakes

Taxpayers most often:

• miss the 10-day deadline;
• file only emotional objections without calculations;
• do not rebut each episode of the report separately;
• attach documents without a list or explanations;
• have no proof that the objections were filed;
• do not ask to take part in the review;
• ignore the issues of fault and mitigating circumstances;
• rely only on procedural violations and do not dispute the assessments on the merits;
• create documents retroactively.

The objections should form a coherent position that can later be used in an administrative or court appeal.

What to do after receiving a tax assessment notice

If the STS has not taken the arguments into account and issued a PPR, it can be challenged administratively or in court.

A complaint to the higher-level tax authority is filed within 10 business days following receipt of the PPR (paragraph 56.3 of the Tax Code). A complaint filed on time suspends the monetary obligation set out in the PPR until the administrative appeal is completed (paragraph 56.15 of the Tax Code).

Keep the STS’s reply to the objections, the commission’s conclusion, the attached documents and proof that they were filed: they will form part of your evidence.

Conclusion

Objections to an audit report are a chance to correct errors before a PPR is issued, provide documents, record procedural violations and build a position for any further appeal.

Good objections have three components:

1. an analysis of whether the audit was lawful;
2. a rebuttal of each assessment on the merits;
3. properly prepared evidence and calculations.

Legal framework

• Tax Code of Ukraine No. 2755-VI — subpara. 17.1.6 of para. 17.1 of Art. 17 (right to sign the report with a reservation and file objections), Art. 42 (sending documents to the taxpayer), paras. 56.3, 56.15 of Art. 56 (complaint deadline, suspension of the monetary obligation), subpara. 78.1.5 of para. 78.1 of Art. 78 (unscheduled audit following objections), paras. 86.3, 86.7, 86.8 of Art. 86 (refusal to sign, filing and review of objections, deadlines for issuing a PPR)
• Review of the Administrative Cassation Court’s case law on procedural violations in ordering and conducting tax audits — Supreme Court of Ukraine, September 2026

ARGUS Consulting group analyses tax audit reports, prepares objections and additional documents, represents taxpayers at the review and supports administrative and court appeals against tax assessment notices. See tax dispute support.

This material is for information only and is not individual legal advice. Legal framework as of 28.10.2026.