The Office of the Commissioner for the Protection of Rights and Legitimate Interests of Business Entities under the President of the Republic of Uzbekistan considered the appeal of individual entrepreneur Dzhavakhir Olimovich Boltaev (name changed), operating in the city of Termez, Surkhandarya region.

As it was found out, according to the order of the State Tax Inspectorate of the city of Termez, it was decided to conduct an on-site tax audit at a retail outlet located in the city of Termez.

During the on-site tax audit, it was established that the individual entrepreneur sold the product “Orbit Chewing Gum” to the buyer for cash, without using the online control cash register, without presenting a receipt.

Based on the results of the on-site tax audit, an act and protocol on cases of violations of the law were drawn up. Based on this, a fine in the amount of 10,009,200 soums was applied to the entrepreneur in accordance with Article 221 of Part 1 of the Tax Code of the Republic of Uzbekistan.

During the study, it was found that a number of violations were committed during this inspection.

Firstly, the order to conduct an on-site tax audit at an individual entrepreneur’s outlet was made without the consent of the legal service center in the prescribed manner.

Secondly, during the on-site tax audit, in addition to the fact that the buyer was not issued a check, an inspection was carried out to ensure compliance with the requirements of other activities of the enterprise, including artificially increasing or decreasing the price of the goods sold and the displayed price depending on the form of payment in cash or bank cards.

Thirdly, a representative of the enterprise was not called to review the inspection materials. The verification documents were not discussed in his presence. It was also noted that on the day of the inspection, the father of the head of the individual entrepreneur was engaged in trading at a retail outlet, however, when preparing the documents, the tax authority indicated that they had been prepared with the head of the individual entrepreneur.

According to the above, it was determined that the on-site tax audit was carried out in violation of the norms of procedural and substantive legislation, the decision was made in violation of the Presidential Decree, the resolution of the Cabinet of Ministers and the norms of the Tax Code, and the illegal decision was canceled.