Revenue, Redistribution, Re-pricing, and Representation

“The outgoing year was a busy and challenging one, though not unusually so. Lawmakers took a ‘time out’ and abstained from making any major tax changes. Parliament failed to vote on the much anticipated new Tax Code, but for those who had to endure reading through the Draft Code, few tears will be shed over this setback. Indeed, there are noticeable deficiencies in both tax law and tax practice along with many other things to complain about. Nevertheless, Ukraine did not deserve to be ranked second to last in the recent widely quoted survey, which compared the ease of paying taxes in various jurisdictions. Those of us who work first hand in international taxation issues know that Ukraine is not that bad. There is a sense that we are experiencing the calm before the storm at present. The authorities may soon discard the ‘form over substance’ approach and make life uncomfortable for taxpayers. If this does happen, it will represent a major challenge for all — tax advisers, in particular”, Vladimir Kotenko, tax and legal partner with Ernst & Young Ukraine, said.

The KM Partners law firm is known for its strong technical knowledge in both specific and general tax problems. Alexander Minin, senior partner at the firm, really understands what is required and does not simply provide a dry interpretation of the law.

In 2007 the team at Ernst & Young provided services to clients from a wide range of industries, including oil and gas, banking, retail and consumer products, real estate, telecommunications and media, as well as manufacturing. Ernst & Young is highly regarded for its outstanding team of tax lawyers, among whom are Trevor Link, Vladimir Kotenko, Yulia Logunova, Pavlo Moroz, Albert Sych, Igor Chufarov, Tetyana Mykolenko, Iryna Kalyta and Jorge Intriago. Tax and legal partner Vladimir Kotenko received excellent references during the poll and continues to be one of the leading Ukrainian tax practitioners.

Konnov & Sozanovsky’s law firm provides clients with innovative and practical tax advice at exceptional levels of performance. The tax experience for 2007 covers corporate restructuring, resolving tax issues during acquisition of a TV producer and acquisition of land plots by a foreign holding company. One of the firm’s partners, Yevgeniya Derbal, heads the tax practice and was frequently mentioned during the poll.

Magister & Partners guides the largest CIS and multinational corporations, banks, and institutional investors through the intricacies and application of tax laws and helps its clients to manage the tax aspects of their most ambitious undertakings. Oleh Marchenko and Anna Zorya were engaged in resolving tax issues raised during the accomplishment of projects which it handled.

The Kiev office of DLA Piper Ukraine, which was strengthened by arrival of senior associate Oleksandr Strukov in 2007, provides regular advice on ongoing tax issues, as well as structuring and restructuring of business models for a number of international and Ukrainian business corporations. Baltic Beverages Holding, Novonordisk, ABC Alliance, Apollo Real Estate Advisors / 1849 Plc, Credit Rating are the main clients of the firm’s tax practice.

In 2007 Sayenko Kharenko advised its clients on tax issues related to the establishment of the first MTN programs by Ukrainian banks in Ukraine, acquisition of banks and other businesses in Ukraine followed by their restructuring, IPOs of Ukrainian companies abroad, and the starting of Greenfield projects for the construction of commercial, recreational and industrial facilities in various regions of the country. Mykola Orlov, Michael Kharenko and Nazar Chernyavsky were mentioned as attorneys advising on tax matters.

In 2007 Beiten Burkhardt was reinforced with a tax and customs group headed by Denys Volkov. Anna Khokhlova and Denys Volkov were highly recommended as experts in various tax areas. In 2007 the tax and customs group was involved in tax structuring for a large real estate project with the contemplated volume of investment exceeding EUR 180 million and the implementation and supervision of a project to the value of EUR 1.5 million funded by the state budget connected with supply of goods on DDP terms of delivery in accordance with tender terms. Viktoriia Fomenko, co-chair of the EBA Customs Committee for 2008, is smart and practical in customs services.

Volkov & Partners specializes in different aspects of tax law, i.e., tax planning, deal structuring, analyzing tax matters in the course of due diligence, advising clients on corporate and personal tax issues, etc. In 2007 Volkov & Partners provided legal services in the tax field to Hy-Line International, Kiy Avia, Golden Foods, etc. Ihor Martsyn and Olga Galaka provide quality work of an international standard.

KPMG provided tax services to international and local clients, including Atlas Copco, BNP Paribas, Electrolux, ING, Munich Reinsurance, Nemiroff, Praktiker, Schneider-Electric, Soletanche-Bachy, UNIQA and also cooperated with the Ministry of Finance in developing the Tax Code of Ukraine. Partners Rob Shantz and Sergey Popov head the tax practice of KPMG in Ukraine.

Among Gramatskiy & Partners attorneys at law recent projects, it is worth noting successful representation of client interests in litigation with Ukrainian state tax authorities as regards tax obligations exceeding UAH 40 million. Ernest Gramatskiy and Yuriy Zabiyaka are incredibly professional and always highly ethical.

Tax planning and advice are one of the Lavrynovych & Partners’ key areas for clients like Procter & Gamble Manufacturing and NK Alliance. Partner Iryna Marushko is regarded as a key specialist in tax and international tax matters.

At the end of 2007 Zamorska & Partners launched its accounting advisory service line, which enhanced the firm’s capabilities as an advanced tax and accounting adviser. Headed by Tatiana Zamorska, the firm demonstrates its dedication to Western standards of service for its clients, foreign investors, leading foreign banks and non-bank financial institutions.

Andriy Kravets & Partners’ professional team of lawyers recently represented in court the interests of a Ukrainian grain terminal in a case against the tax authorities. Vladyslav Lyaskovskiy is the firm’s leading tax expert.

Dmitrieva & Partners’ attorneys specialize in issues concerning taxation of corporate profit, charges and payments of value added tax (VAT), import VAT, compensation of VAT involving budgetary and import and export, as well as goods (works, services), and equipment. The key adviser on tax matters is Olga Dmitrieva.

Law firm Dinastia last year reversed in court tax fines imposed on the Prydneprovsk railway to the sum of USD 11 million and won disputes at which charging of compulsory payments on the profit of public enterprises to the State Budget of Volnogorsk Mining and Smelting Complex was called into question, thereby saving about USD 2 million for the enterprise.

There were interesting judicial proceedings with the assistance of Pravochin attorneys at law on protection of the interests of Boryspil International Airport, LLC Ferrero Ukraine and the UBC Group in the Supreme Administrative Court. Oleksandr Pashchenko impresses with his strategic thinking and careful advice.

This year the lawyers of the Jurvneshservice law firm focused mainly on tax disputes: correctness of land tax calculation, budget returns of VAT to Ukrainian taxpayers, correctness of income tax accruals, application of international treaties on avoidance of double taxation as to withholding and income tax accruals, etc. Partner Anna Tsirat as well as lawyers Dmitry Salatiuk and Taras Kulbaba represented the interests of clients as to the above-mentioned issues.