The government supported out-of-court collection of tax debts

The government supported out-of-court collection of tax debts.

The Russian Government has approved a bill which will allow tax authorities to collect debts from citizens in a simplified procedure, without recourse to the courts. The new scheme provides for automatic debt write-off if the taxpayer does not dispute it, Vedomosti reports.

According to the amendments, information about the debt will be posted on the citizen's unified tax account (UTA). On the same platform it will be possible to file an objection to suspend the process of automatic write-off. If no objection is received from the citizen, the tax authorities will be able to write off the debt without going to court.

The current system provides for the collection of tax debts through the court in the order procedure. Under this procedure, a decision on collection is made within ten days of filing an application. Every year the courts consider about six million such cases, but only 5% of court orders are canceled after objections of taxpayers.

The authors of the initiative believe that the transition to an out-of-court mechanism will reduce the burden on the judicial system and accelerate the process of debt collection. Nevertheless, a number of experts express fears that the innovation may increase the costs of citizens for legal assistance in case of disputes with the tax authorities.

The bill has been sent to the State Duma for consideration. If the document is adopted, the new mechanism of extrajudicial collection may come into force in the coming months.

The adoption of the bill on out-of-court collection of tax debts could lead to a number of significant consequences, both positive and negative:

Positive consequences: Reduced burden on the court system.

Courts handle millions of debt collection cases each year, which takes up resources and slows down other categories of cases. Automating the process will reduce this workload.

Faster collection procedures: Out-of-court procedures will allow tax authorities to write off debts faster, which can improve tax collection and replenish the budget.

Reduction of administrative costs: Simplification of the procedure will reduce the cost of litigation and administrative procedures, which is beneficial to both the state and bona fide taxpayers.

Negative consequences:

Risks of error and abuse: Automation of the process can lead to erroneous debits, especially if the taxpayer fails or is unable to file an objection in time.

Deterioration of taxpayer protection: The court system provides for detailed proceedings. Out-of-court procedures may reduce the guarantees of fair adjudication of disputes.

Social strain: Vulnerable categories of citizens, such as pensioners or people with low financial literacy, may be disadvantaged by write-offs that they learn about late.

We will be happy to provide you with legal assistance regarding the minimization of legal risks and available opportunities. We will try to find a solution that is right for you.

Call +7 (383) 310-38-76 or write to info@vitvet.com.

We recommend that you read our blog dedicated to legal and judicial cases (arbitration practice) and read the materials in the "Articles" section.

Our law firm provides various legal services in different cities of Russia (including Novosibirsk, Tomsk, Omsk, Barnaul, Krasnoyarsk, Kemerovo, Novokuznetsk, Irkutsk, Chita, Vladivostok, Moscow, St. Petersburg, Yekaterinburg, Nizhny Novgorod, Kazan, Samara, Chelyabinsk, Rostov-on-Don, Ufa, Volgograd, Perm, Voronezh, Saratov, Krasnodar, Togliatti, Sochi).

We will be glad to see you among our clients! Call or write right now!

Phone +7 (383) 310-38-76
Email info@vitvet.com

Law firm "Vetrov and partners"
more than just legal services