Repayment of an outstanding debt trough tax receivables of the taxpayer: do we need to amend the legislation?

Abstract

The paper analyzes the use of imposing restorative measures of coercion on taxpayers having tax debts in the form of recovery of arrears from the amounts due to the outstanding debtor by his or her debtors.

The author has examined the history of the institution of foreclosure on accounts receivable of the taxpayer in the domestic tax legislation of the 20th century and at the present stage, the experience of this institution’s functioning under the laws of Kazakhstan and Belarus, has analyzed the rules governing the foreclosure on accounts receivable under the Federal Law «On Enforcement Proceedings.»

On the basis of the study, the author concludes that the current procedure for collecting receivables is ineffective and proposes to empower tax authorities to apply this measure of coercion directly to debtors are criticized, since they are not participants of tax relations.

The author suggests that the Federal Law «On Enforcement Proceedings» be supplemented with additional rules providing for the right of the bailiff to appeal to the court to recover the amount of receivables from the debtor and for the subsequent application of the general rules of enforcement proceedings to the debtor.