Contents / Payment of taxes

Obligation to pay taxes

The obligation is considered to be fulfilled by the taxpayer:
- from the moment a payment order is submitted to the bank, provided that the money balance of the taxpayer�s bank account is sufficient to make the payment
- after a tax body or court rules on offsetting tax amounts overpaid or overcharged
- after tax is withheld by a tax agent
Failure to fulfil an obligation to pay taxes constitutes grounds for tax or customs body or body of state off-budgetary fund sending taxpayer demand to pay up tax
In case of failure to pay or failure to pay the full amount of a tax before the established deadline, the tax debt is collected at the expense of monetary assets available on taxpayer's bank accounts or at the expense of other property of the taxpayer (see procedures for organisations and natural persons).
Methods of ensuring execution of tax payment:
- pledge of property
- surety
- penalising interest
- suspension of bank operations
- seizure of property

	Demand to pay up tax
	A demand to pay up tax is a notice in writing sent to a taxpayer or a tax agent concerning an outstanding amount of tax as well as such payer�s obligation to pay up the outstanding amount of tax and appropriate penalising interest within an established period of time. The demand should be submitted: within three months after the due date unless otherwise stipulated by the Tax Code within ten days after a tax body makes its decision based on the results of the tax audit

Order of enforcement of obligations for organisations

As a general rule collecting taxes from an organisation is enforced without recourse to court. Enforcement without recourse to court may not be applied to an organisation if the obligation to pay tax is based upon the tax body having changed legal qualification of transactions concluded by the taxpayer with third parties or legal qualification of the status and nature of the taxpayer�s activity


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Order of enforcement of obligations for natural persons


	Filing by the tax bodies a claim on collecting tax and accrued penalising interest from the value of the taxpayer's assets within six months: to the arbitration court (with respect to the property of an individual entrepreneur) to the court of general jurisdiction (with respect to the property of a natural person other than an individual entrepreneur)


	Proceedings in accordance with the legislation of arbitration procedure or the legislation of civil procedure

	Penalising interest
	Applied irrespective of the application of other methods to ensure the obligation to pay a tax. Amount � 1/300 of the effective refinancing rate of the Central Bank of the RF. Is not charged on arrears not repaid due to suspension of transactions on bank accounts (by order of court or tax body) or to seizure of property. Penalising interest imposed on organisations is collected without recourse to court, on natural persons - with recourse to court.