Arrest of Property

If it is necessary to collect the tax, as well as to ensure the payment of any property damage, the arrest of property, which consists in restricting the property right, is widely used. The arrest of property is imposed with the sanction of the prosecutor by the tax or customs authorities.

The seizure of the mortgaged property is used to ensure the possible confiscation of property, civil action, as well as taxes, fines, and other mandatory payments. Any property may be arrested, except for essentials. In this case, the property may be left to the owner for safe custody, or may be transferred to third parties for storage.

The seizure of property is imposed on the case of failure by the taxpayer organization within a certain period of time to pay penalties, fines, taxes and if there are grounds to believe that a person will take or can take measures to hide the property or disappear himself. Arrest imposes on the amount of property sufficient to pay off the debt. After the repayment of the debt, the seizure of the property is canceled. There can be no seizure of the IP's property, since the sanction is applied only to organizations.

The seizure of the debtor's property can be either partial or complete. Full arrest is understood as such restriction of property rights, under which a person has no right to dispose of this property, and possession and use is exercised with the permission and control of a customs or tax authority. In case of partial arrest, the owner may own, use and even dispose of the property, however with the permission and under the control of the customs or tax authority. The arrest can also be imposed on all property belonging to the taxpayer organization. The head (deputy) of the customs or tax authority takes the decision on the arrest, as well as the place of the subsequent storage of the property, and it must be expressed in the form of a resolution. The arrest of property is made in the presence of witnesses. A representative of the taxpayer organization may also be present. Before the arrest, the officials who conduct them present to the taxpayer organization an order for seizure of property, as well as documents that confirm the authority. Then all present persons are explained their rights and duties. After this, an inventory of the property is carried out, indicating the number, name, individual characteristics, cost. All information about the property is entered in the protocol, or in the inventory attached to it. Those who are present at the time of arrest are presented with all the property that is being described. It is not allowed to seize property at night. It is held only in the case that is urgent.

Alienation of property, which is seized, its concealment and embezzlement are not allowed. In this case, the guilty person can be held liable in accordance with the law.

After the cancellation of the decision to arrest the property within a period of up to five days, the customs or tax authority sends a notice to the taxpayer.

The debtor, whose property is seized, has the right to indicate the property that he asks to recover first. The priority of recovery is determined by the official who is carrying out the arrest. The debtor is obliged to provide information about the property in his possession, bank accounts and other organizations. If the information is not provided, then they are requested from the tax authorities, banks and other credit organizations, based on the amount of debt. Tax authorities, banks and other credit institutions provide information within a period of up to seven days after receiving the request.