Grounds Established for Recognizing Budget Debt as Uncollectible
DEAR CLIENTS!
The President of the Russian Federation signed a law amending Art. 47.2 of the Budget Code of the Russian Federation, which establishes the grounds for recognizing debt to the budget as uncollectible. Taking into account the new wording of this article, the following types of payments may be considered uncollectible:
- debt of bankrupt individuals for payments to the budget, outstanding during the bankruptcy procedure;
- debt of those sentenced to fines who were amnestied or pardoned;
- debt for unfulfilled administrative fines, if the relevant body made a decision to terminate the execution of the decision imposing an administrative penalty;
- debt of legal entities excluded from the Unified State Register of Legal Entities on the basis of the registration authority, in the presence of a resolution of the bailiff of the executor on the return of the executor due to the lack of information about the whereabouts of the debtor, his property or the debtor’s lack of property or due to the debtor’s lack of property that can be foreclosed on.
However, if an inactive legal entity is reinstated in the Unified State Register of Legal Entities, then its debt to the budget will be restored.
These changes expand the list of grounds for recognizing debt to the budget as uncollectible.
Author:Alena Ivanova Lawyer, Advisor to GRATA International St. Petersburg
Contacts: +7 (812) 384 38 48
Email: AIvanova@gratanet.com