Collection of debts on tax
Collection of tax debt from a taxpayer shall be carried out first from the funds in bank accounts, and if it was insufficient – from other property of the taxpayer.
If a taxpayer found out about a scheduled tax audit and transferred its funds or other property to other persons, the collection of the taxpayer's tax debt may be made from these persons.
The collection of tax debt shall be carried out by the tax authority by sending a collection order to the bank where the taxpayer has accounts. The collection order shall be issued no later than 3 working days after the expiration of the period for the payment of tax.
If the tax debt of a taxpayer cannot be collected in cash from bank accounts, the tax authority has the right to collect it at the expense of other property of the taxpayer. Collection of tax debt from other property has to be authorized by a court.
Seizure of property of a taxpayer
Seizure of property as a method of collecting tax debt is the action of the tax authority to restrict the taxpayer's property rights in relation to its property. Seizure of the taxpayer's property shall be carried out in the event of incomplete payment of the tax debt within 15 calendar days from the date of sending of the tax authority's collection notice.
The seizure of property may be administered when there are insufficient funds in the taxpayer’s bank accounts to ensure the fulfillment of its obligation to pay taxes, accrued penalties and fines. Only the property which is necessary and sufficient to pay off tax debts must be subject to seizure.
The seizure of property for tax debt shall be carried out by a court decision. If the taxpayer acknowledges its tax debt, the tax authority may seize the property of the taxpayer based on the decision of the tax authority.
The seizure of property shall be accompanied with video recording, and if this is not possible, with the participation of witnesses.
Appealing against actions of tax authority
Decisions and actions of tax authorities may be appealed to the tax committee or to the court at the discretion of the taxpayer.
Decisions of tax authorities that were made based on the results of on-site tax audit or comprehensive tax audit may be appealed in court only after they have been appealed to a higher tax authority. A complaint to a higher tax authority against decisions made upon the results of on-site audit or comprehensive audit may be filed within 1 month from the day when the taxpayer learned or should have learned of the violation of its rights in connection with the audit.
Filing a complaint with a higher tax authority or with a court suspends the execution of the contested decision, as well as the application of financial sanctions (fines).
In the event of cancellation of a decision of the tax authority made upon an audit, the unlawfully collected funds are subject to return to the taxpayer with interest.