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Public help TVi to pay off tax authorities

25.09.2012   
TV Channel TVi has paid the tax authorities almost 4.1 million UAH although, as the channel’s statement stresses, it does not recognize any debt and considers it to be unlawful.

TV Channel TVi has paid the tax authorities almost 4.1 million UAH although, as the channel’s statement stresses, it does not recognize any debt and considers it to be unlawful. However failure to pay, it says, in the extremely short timeframe, stipulated by the court, could have led to all the channel’s accounts being frozen and as a consequence to the channel being unable to work.

The charitable action announced on 13 September “Save TVi” has made it possible to collect the amount required. Donations were received from almost 11 thousand viewers and organizations amounting to almost 3 million UAH.  Two million were also paid to the TVi account on Monday as promised by the United Opposition.

The channel is thus able to pay the bill and remains with around 747 thousand UAH remaining as charitable aid. As well as the 4.1 million UAH now paid the tax authorities, TVi says that it also lost 6 million UAH which the State was supposed to compensate for VAT paid.

As reported, on 12 September the independent television channel lost its appeal against the results of the check carried out by the State Tax Administration.  The Administrative Court of Appeal thus revoked the ruling of the first instance court which had been in TVi’s favour and rejected the channel’s application to have the decision of the Tax Administration declared unlawful.  It thus revoked the part of the first instance court’s ruling which counted over 3 million UAH credit from VAT.

The results of the tax check in July resulted in criminal proceedings being brought against the General Director of TVi, Mykola Knyazhytsky. The tax police accused him of not paying 3 million UAH in taxes, while Mr Knyazhytsky stated that this was money owed the channel in VAT.  This had been the subject of a court examination which then found in TVi’s favour.

Following considerable publicity and concern expressed not only within Ukraine, the Prosecutor revoked the tax police’s decision to initiate criminal proceedings and closed the case.

As reported, TVi is virtually the sole independent TV channel providing information critical of the present regime and a platform for all political parties. 

It has in one way or another been under pressure since early 2010.  The pressure increased enormously with the actions by the Tax Administration, which coincided with decisions by a large number of cable operators to remove the channel, which is extremely popular, from its packages.

More information about the tax claims can be found here, and about the general assault on TVi in the appeal here:

Information about Monday’s payment of the bill, as well as the picture, are from the TVi site

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