Arrears are Features of collecting arrears

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Tax arrears are, in a word, debt. It is formed in case of non-payment of a mandatory payment to the budget within the time period established by law.

Historical background

Arrears began to appear for the first time among the peasants. The late payment of taxes was due to various reasons. In times of serfdom, fees were generally very high. The income of the peasants was not enough not only to pay fees, but also for a normal life. As a result, there was a shortfall. This debt could also have formed in the event of a poor harvest.

Tax debt

Currently, arrears are not only the amount of tax not paid by the due date.

Such a debt may be formed in connection with the excessive reimbursement of the deducted mandatory payment to the economic entity. From the budget, for example, you can return the transferred amount of VAT and excises.

Sanctions

When calculating the amount of tax, a certain period is set in which it must be transferred to the budget. On the next day after the end of this period, in case of non-payment, an arrears arise. This means that the violator of the requirements of the law maypen alties apply. They are accrued until the debtor repays the debt together with pen alties.

If the subject was over-reimbursed with the amount of deduction, then pen alties will be charged until the corresponding amount is returned.

Important moment

The amount of arrears is a debt that must be paid by the subject voluntarily with accrued pen alties. If a person evades repayment of the debt, the control authorities have the right to collect it forcibly.

In some cases, the tax office recognizes the debt as bad and writes off the arrears. This happens very rarely.

Repayment of arrears by force can be carried out at the expense of the debtor's funds or his property, if there are no or insufficient funds in his bank accounts.

Debt claim

Before the start of the forced collection of arrears, a notification is sent to the violator with a proposal to voluntarily pay off the debt and pen alties.

The claim is sent to the debtor within three months from the date of discovery of the debt by the tax authority. If the arrears were revealed during the verification of settlement transactions performed by the person responsible for the deduction of contributions, a notice is sent within 10 days.

Notice must include:

• Amount owed.
• Repayment terms.
• Consequences that may occur if the debtor fails to fulfill obligations to the budget.
• Links to regulations,regulating relations in the field of taxation.

If the term is not specified in the notice, then, according to the general rules, the subject must repay the debt within five days.

In the absence of active actions on the part of the debtor aimed at paying arrears and pen alties, the control authorities begin the process of enforcement. The corresponding decision is sent to the person within 6 days.

The amount of pen alties depends on the size of the arrears. When calculating, the refinancing rate of the Central Bank is applied. The indicator valid on the date the debt was formed is used.

Accounting nuances

If the company uses the simplified tax system, the amount of accrued interest is not reflected in the costs. Accordingly, they are not shown in the book of expenses / income.

In other cases, in accounting to reflect the amount, you can open an additional subaccount to the "profit and loss" account.

When deducting arrears and pen alties, 2 payment orders should be issued. This is due to the fact that these payments have different codes in the budget classification.