Bank guarantee – the new tool of providing the tax revenues

In order to provide additional tax payments, legislator, following the international experience, added new article 74.1 «Bank guarantee» in The Tax Code of the Russian Federation by the Federal Law as of 23.07.2013 N 248-FZ. The article entered into force on 1st October 2013.

The meaning of innovation is quite transparent and economically reasonable: bank gives tax authorities the warranty for the fulfillment of tax obligations by a taxpayer. If the taxpayer fails the payment of all his taxes and penalties in due time, in accordance with the conditions, which were made between the bank and the taxpayer, bank undertakes to fulfill these obligations in full. The guarantee must be provided by the bank, which is included in the list of credit institutions, which meet the set requirements for acceptance of bank guarantees. Such list is carried by the Ministry of Finance of Russian Federation and is publicly available.

Prior to the introduction of the bank guarantee, the taxpayer for postponement of tax payments and guarantee of tax revenues could use the pledge of property, warranty. Besides penalties may be assessed on taxpayer, the operations on bank accounts may be suspended and property could be seized. Thus, bank guarantee will be the new tool of state policy for culture regulation and increase of providing the tax revenues to the treasury.

One of the main criterion, by which bank can enter the list of commissioners for adoption of a bank guarantee, will be the existence of own funds (capital) in amount of at least one billion RUB. Banks should also follow the mandatory standards of The Central Bank of the Russian Federation at all reported periods. Thereby, in this sphere will work large credit institutions and it is quite reasonable. After all if the bank loses its license, the taxpayer will be in a difficult situation because the State won’t get its taxes, moreover it will be connected by financial obligations with a bankrupt bank.

The economic effect for a businessman will be in the fact that bank guarantee will let him pay taxes in those periods when it isn't profitable to withdraw money from a turn, thereby slowing down the commercial process.

Information agency Credinform is preparing to release an independent index of banks financial stability, which will indicate the risk level of cooperation with credit agencies. The index will also consider the possibility of the credit institution to provide bank guarantees.