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German businessman to have law on Ukraine's Yanukovych

© RIA Novosti . Alexey Kudenko / Go to the mediabankUkrainian President Viktor Yanukovych
Ukrainian President Viktor Yanukovych - Sputnik International
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A German businessman owning an enterprise in Ukraine will file a lawsuit against the Ukrainian President Viktor Yanukovych for late value-added tax (VAT) repayment, the Deutsche Welle company reported on Sunday.

A German businessman owning an enterprise in Ukraine will file a lawsuit against the Ukrainian President Viktor Yanukovych for late value-added tax (VAT) repayment, the Deutsche Welle company reported on Sunday.

Meder Reinhardt founded the Cutmetall Ukraine firm in 1997. He said the company had been particularly on the brink of bankruptcy since 2009. "The firm had no money even to pay salaries to its workers and clients had to abandon their orders, as the value-added tax had taken off all money, the entrepreneur said.

In early 2010, Ukraine has already paid down the $252.8 million debt on value-added tax repayment, however, the entrepreneur decided to litigate with Ukraine on the property loss. Meder does not rule out the possibility of a future lawsuit on Ukraine for the moral damage.

"My co-founder from Germany urged me to return the capital investment. I had to cut the work force and sell a part of the equipment, to pay off the debts," Meder said.

"The out-of-time VAT off-set is a violation of Constitution," Cutmetall's lawyer Stepan Filin said.

Ukraine's Tax Administration and president Yanukovych who is guarantor of Ukraine's constitution are the defendants in the case.

"Only the president's participation ... will allow considering this matter objectively, because we have quite big problems in our judicial system," Filin said.

In April 2010, Ukrainian Prime Minister Mykola Azarov said that the state VAT repayment debt is some $3.8 billion. "The only remedy now is to discharge our duties with security papers," he added.

KIEV, July 11 (RIA Novosti)

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