Tax Digest for July: Out-of-Court Recovery of Tax Debts from Individuals

According to Pravo.ru, several long-discussed initiatives were approved in July, and the Federal Tax Service of Russia will now be able to recover debts from individuals without going to court.

Maria Semenova, Director, Transaction Tax Structuring Department at FBK Legal, commented on the out-of-court recovery of taxes from individuals:

‘The President has signed a law allowing the FTS to recover arrears on taxes, levies, insurance premiums, interest, and fines from individuals without court involvement. However, the out-of-court procedure is applicable only if the taxpayer has no objections. In case they disagree with the tax payment demand, they can submit a request for recalculation or file a complaint, both before and after the tax payment deadline. If the tax authority denies the recalculation, the debt can only be recovered through court proceedings.

Given this fact, it is recommended to monitor settlements with the budget through the taxpayer’s personal account to ensure timely submission of a recalculation request in case the taxpayer disagrees with the assessed amount’.