Prevention of tax arrears is one of the important directions of effective tax administration. Timely fulfillment of tax obligations allows to ensure stable incomes of the state budget, prevent the accumulation of debts and form a reliable tax environment, – it is stated in the message distributed by the SRC.

In case of non-fulfilment of the tax obligation within the period specified by the Tax Code, a tax debt is formed, which causes legal consequences provided by the law. In particular, a penalty of 0.075 percent is calculated for each delayed day on the amount of tax not paid within the specified period, until the full payment of the obligation, but not for more than 730 days. In case of non-fulfillment of the tax obligation, the tax authority applies security measures provided by law. At the same time, the legislation also provides regulations that, in the presence of certain conditions, enable the taxpayer to pay off the accumulated liabilities in a phased manner. If the tax liability amounts to two million drams or more, and the taxpayer has repaid at least 20 percent of it, as well as other conditions established by law are present, the security measure used can be replaced by another security. Among such measures are the property pledge agreement with a gradual repayment schedule, as well as guarantees provided by banks, credit organizations or insurance companies. These regulations enable the taxpayer to fulfill his tax obligations within a period of up to nine months.

At the same time, effective tax administration is not only the collection of already formed debts. It is more important to prevent new debts. For this purpose, the State Revenue Committee introduces new mechanisms of interaction with taxpayers. One of them is the new procedure for notification and collection of unpaid tax obligations, which came into force on July 1. According to the new regulation, on the day the tax liability arises, a reminder is sent to the taxpayer through the electronic reporting system, after receiving which the taxpayer can submit written objections to the tax authority within seven calendar days, if they exist. Submitted objections are subject to investigation, ensuring the taxpayer’s right to be heard. If the objections presented by the taxpayer are valid, the proceedings are considered terminated, and he is notified about it. And in the event that the tax obligation is not fulfilled even after the reminder, and the objections are not accepted or are not submitted, the tax authority can apply measures to ensure the fulfillment of the tax obligations, including a lien on bank accounts and movable and immovable property.

The State Revenue Committee urges taxpayers to fulfill their tax obligations within the time limits set by law. Tax payments made on time allow to avoid additional financial burden and further measures of tax administration, contributing to the formation of reliable and predictable relations between the state and taxpayers.

—