Farovon LLC (the name of the business entity has been changed), operating in the Mubarek region, appealed to the Office of the Business Ombudsman with a complaint about an unreasonable debt formed by the tax authorities.

As it was revealed, on December 26, 2019, the Mubarek District Tax Inspectorate assessed an unreasonable debt of the LLC for value added tax in the amount of 414,679,732 soums.

On January 27, 2023, the Kashkadarya Regional Tax Inspectorate sent a demand to the Company to repay the unreasonable debt.

Also, due to debt, the validity of the LLC’s registration certificate as a VAT payer was suspended from February 3 of this year.

In addition, on February 11, 2023, a ban was introduced on real estate owned by LLCs.

The LLC's appeal to a number of competent government bodies and organizations regarding the current situation was ignored.

As a result, the activities of the enterprise with 12 permanent jobs and average annual exports of 500 thousand US dollars were temporarily suspended.

At the time of consideration of the LLC’s appeal in the Office of the Business Ombudsman, the unjustified debt amounted to 633,619,055 soums due to the accrual of interest.

Regarding this offense, the Business Ombudsman, in the interests of the LLC, filed a lawsuit to the Karshi Interdistrict Administrative Court.

By the decision of the Karshi Interdistrict Administrative Court dated August 21, 2023, the claim was satisfied, and officials of the tax authority were obliged to write off an unreasonable amount of tax from the LLC.

By a decision of the administrative court of the Kashkadarya region dated October 17 of this year, the tax authority’s appeal was rejected, and the decision of the first court was upheld.