Fines for unfiled bankruptcy petition

Information agency Credinform always pays attention to bankruptcies. There are more than a dozen of articles on this topic on our web-site. For example, in October 2015 we have covered the bankruptcy issue in the articles “Оn individual bankruptcy” and “Individual bankruptcy - new reality for the Russian economy”.

The legislation on bankruptcy was appended with the enforceable Federal Law N 353-FL “On amendments to the Civil Procedure Code of the Russian Federation” of December 12, 2010.

The amendments to the “Code of Administrative Offences of the Russian Federation” N 195-FL of December 30, 2001 (as last amended on 30.12.2015) were accepted and aimed at toughen up the administrative responsibility for unfiled bankruptcy petition by natural persons and legal entities. The Federal tax service amerces from 1 to 3 thousand rubles for individuals and from 5 to 10 thousand rubles for public officials committed an offense. In case of repetition of the violation throughout the year, the arbitral tribunal has the right to disqualify the guilty persons on the proposal of the tax authorities.

Following the amendments, the persons supervising the debtor can also be disqualified by judicial decision. This is possible if there is a protocol on administrative offense of non-performing the judicial act to bring to vicarious liability. Tax authorities are now endowed with the right to establish such protocols.

These amendments also downgrade for breaches of bankruptcy procedures legislated in the Federal Law N 127-FL “On Insolvency (Bankruptcy)” of October 26, 2002, as well as for non-performance the obligation to file the bankruptcy petition to the arbitration court by the debtor. This applies to professional participants of the bankruptcy proceedings, including arbitration managers. For the first breach a warning will be given, and for the violation repeated during a year disqualification can be followed.

Moreover, the Federal Law “On Insolvency (Bankruptcy)” was amended in bankruptcies of real estate developers and citizens-debtors. Conditions for the repayment of participants’ requirements through the transfer of unfinished construction of the facility were simplified. The list of information about the bankruptcy of a citizen for publication was arranged. The conditions and procedure of bankruptcy of a citizen and the distribution of his property with a notary in case of the citizen-debtor’s death were specified.

For information:

According to the Federal tax service, 221 806 legal entities and 14 128 individual entrepreneurs (farms in form of individual private enterprise) have ceased their activities for bankruptcy for the whole monitoring period, including the year 2015 with 11 213 bankrupted legal entities and 1 926 individual entrepreneurs and farms in form of individual private enterprise.

Following the same source, 4 820 432 active legal entities and 3 640 230 individual entrepreneurs (farms in form of individual private enterprise) are registered in Russia as of January 1, 2016. All information about active and bankrupted companies is available by subscription on the Information and analytical system Globas-i®.