Tashkent, Uzbekistan (UzDaily.com) -- A private enterprise, operating in Shakhrisabz, appealed to the business ombudsman with a complaint about the actions of employees of the tax service of Kashkadarya region.

According to the press service of the Ombudsman, seven contracts concluded by a private enterprise with entrepreneurs in 2020 were regarded by the regional tax department as imaginary (sham), as a result of which the enterprise was obliged to pay more than 128 million soums of value added tax (VAT) accounted for on the basis of these agreements.

Despite the fact that the company provided documents confirming that the aforementioned contracts were not fictitious (fake), the tax department withdrew funds in the amount of more than 24 million soums from the company’s account.

Article 14 of the Tax Code states that the establishment of cases of abuse of law, sham (pretense) of the transaction, as well as the application of their consequences is carried out by the tax authorities, and if the taxpayer does not agree, by the court at the suit of the tax authorities.

The Ombudsman filed a complaint with the Karshi Interdistrict Administrative Court, on the basis of which the actions of the tax department of the Kashkadarya region to charge VAT in the amount of more than 128 million soums against a private enterprise were declared illegal.