The number of arbitration cases decreases

вестник 04.02.2021

The number of administrative and civil arbitration cases has grown steadily since 2016, but since 2018, it has begun to decrease. Over the past two years, the percentage of won disputes has also decreased as well.

Main statistics

According to the Information and Analytical system Globas, 1,6 million cases were registered in the arbitration courts in 2020, that is 18,5% less than in 2019 (all types of cases, excluding bankruptcy ones).

The main reason for this dynamics is restriction of business activity in 2020, granting payment deferrals for counterparties and pre-trial settlement of disputes.

Picture 1. Dynamics of arbitration and civil cases in the federal arbitration courts from 2016 to 2020

More and more disputes are being resolved out of the court

In 2020, there was a 60% decrease in the number of disputes related to the collection of taxes and mandatory payments to the budget of the Russian Federation. Their share in the total number of cases reduced from 25% to 12%. (Picture 2).

This is due to a more accurate identification of tax offenses using digital methods of analyzing the company's activities and to the effective joint work of legal departments and control unit of the Federal Tax Service at the stage of inspections and during pre-trial consideration of tax disputes. If any tax risks are identified at the taxpayers’ activity, they are induced to voluntarily clarification of tax obligations without inspections.

However, there is a tendency that is dangerous for enterprises - judicial practice is not being formed, and taxpayers have no basis for judicial protection of their rights.

Taking into account the moratorium on inspections introduced by the Federal Law No. 215-FL of July 20, 2020, an increase in disputes over taxes and obligatory payments to the budget is not expected in the next 4 months. From December 22, 2020, the period for the suspension of penalties was extended to May 1, 2021.

Picture 2. The number of arbitration cases by categories and their share in 2019 and 2020

Every second case is decided not in favor of the plaintiff

For the second year, there is a negative trend among the share of fully satisfied claims (Picture 3). In 2020, only 43% of the plaintiffs achieved full satisfaction of the claims, and only 9% of total amount of the asserted claims for 2020 were satisfied by the court. The main reason is the use of the arbitration court as an instrument of pressure on the counterparty. In most cases, the plaintiffs demonstrate the seriousness of intentions through the court, and thereby accelerate the voluntary process of debt recovery.

Picture 3. Number of cases and fully satisfied claims in 2019 and 2020 Source: Globas data, analysis by Credinform

Resume

The restriction of business activity influenced the decrease in the total number of arbitration cases and the number of fully satisfied claims in 2020.
Detailed counterparties check in the Information and Analytical system Globas is the most effective way to avoid economic disputes and losses.