SC Grand Chamber Adopted Judgment in Pilot Case on Paying USC by Individual Entrepreneur, Who Simultaneously Performs Independent Professional Activity

An individual entrepreneur, working on a simplified taxation system, applied with a claim to the State Fiscal Service. The plaintiff performs the activity upon several types of Classification of Economic Activities: 69.10 “Activity in the sphere of law” (basic), 74.90 “Another professional, scientific and technical activity not listed among other groups”, 66.21 “Assessment of risks and inflicted damage”. Besides, the plaintiff is a judicial expert authorized to hold car accessories expertise, in other words, performs independent professional activity.

The claim is particularly motivated with the lack of the possibility of double registration of an individual performing independent professional activity, if such an individual has already been registered as an individual entrepreneur. The plaintiff requested the court to recognize as illegal the SFS’s demand on paying debt (insufficient payment) from the unified social contribution.

The Supreme Court represented by the panel of judges of the Administrative Cassation Court adopted a judgment in pilot case No. 520/3939/19. With this judgment the Court has satisfied the plaintiff’s demands and has noted that registration of an individual as payer of the unified contribution – individual entrepreneur – and making statements into the register of insured persons by regulator made it impossible to calculate the unified contribution pursuant to another type of payer without adopting relevant decisions and making changes as for previous registration of a person in a way determined with law and sub-legislative normative-legal acts.

On 4^th December, having considered the SFS’s appeal, the Grand Chamber of the Supreme Court did not satisfy it and did not change the judgment of the Administrative Cassation Court within the Supreme Court.