Allowance order of non-recoverable arrears in payments to the budget

On June, 2016 in our publication we have already discussed the topic of responsibility for accounting mistakes, that is directly associated with accuracy of statutory payments discharge to the budget and possible occurrence of arrears in payments

In this case it is worth mentioning that allowance of payments non-recoverable is regulated by the article 47.2 of the Budget Code of the RF. Non-paid within the established period payments can be considered as non-recoverable in the following cases:

• death or declaration of death of a payer – physical person;
• bankruptcy of a payer – individual entrepreneur – in part of debt because of property insufficiency of a debtor;
• liquidation of an organization – in part of debt because of property insufficiency of a company or disability to pay the debt by founders or participants of a company;
• court decision on expiration of the established period on debt collection including refuse from revival of an expired period of application to the court on debt collection;
• resolution on the termination of enforcement proceedings and on return of an implementing document to a plaintiff. Such rule works if it has been more than 5 years since the date of debt creation, also in cases when debt amount does not exceed requirements to a debtor. The same concerns cases of return of bankruptcy notices by the court or termination of bankruptcy proceedings because of insufficiency of money for compensation of legal expenses for carrying out this procedure.

Debts on administrative fines can be considered non-recoverable at the end of the established by the Government period of execution of a punishment by an administrative procedure (this regulation will come into force since January 1, 2017).

Decision on allowance of debt non-recoverable is taken by an administrator of revenue of the budget based on documents approving above mentioned circumstances.

By the order of the Federal Tax Service of Russia of 15.08.2016 №СА-7-8/438@ the procedure of making decisions on allowance of debt non-recoverable to the budget systems of the RF was approved. The order is registered in the Ministry of Justice of Russia on 19.10.2016 №44088.

By the order the list of documents is defined, that is reason to take a decision on allowance of debt non-recoverable. Also debt considering and preparation decision of Commission on receipt and retirement of assets, founded in a regional tax authority, procedures are established. Corresponding enactment on allowance of debt non-recoverable is approved by a head of tax authority and directed to a subdivision of tax authority – administrator of revenue of the budget.

For information

According to the data of the Federal Tax Service of Russia, debt on tax and fees, fines and tax sanctions to the budget system of the RF in nominal terms is growing since 2009 (Picture 1).

*-) data for 2011 are not presented in original source

Besides, lately the tendency of decrease in the debt growth is observed. (Picture 2).

*-) data for 2011 are not presented in original source

Debt to the federal budget takes the largest part (Picture 3).

In the industry section the largest part takes debt of processing industry enterprises (Picture 4).