Limitation period of state receivables.

Limitation period of state receivables.

Every year, almost everyone receives a kind letter, reminding him that it is time to pay a certain amount in favor of the state or municipal budget. These statements are most diverse: from local taxes and fees (property tax, motor vehicle tax, patent tax, garbage fee, etc.), income tax of individuals, corporate tax, etc.

 

 The accrued taxes are not always paid, and the debts are accrued and the amounts due progressively increase. Indeed, both legislation and revenue authorities have taken a number of measures to encourage obligated persons to pay their obligations voluntarily and in a timely manner, a reduction of the obligation with a certain percentage if it is paid up to a certain date, or at the same time, payment plans for 2, 4 or more installments, etc. are provided. However, people do not always have the opportunity to pay their debts within the set period, they start accumulating interest, and the next year and the next tax event are inexorably ... All of this can lead to extremely unpleasant consequences, such as the creation of an executive a case involving a public performer, imposed distraints, property listings, even a public sale. It should also be borne in mind that even if an enforcement case is initiated on another ground, unpaid credit, obligations to the District Heating Company, electricity suppliers, etc., the state is considered to be an adjudicated lawyer.

Salvation still exists. Current tax legislation provides that upon expiration of a certain period of time during which the State has failed to collect the sums due, they shall lapse. This limitation period is 5 years and starts running from 01 January following the year in which the obligation was to be paid, ie. the limitation period for the amounts to be paid in 2010. starts from 01.01.2011 and expires on January 1, 2016. With the expiration of this period the right of the state to compulsorily collect the debts and receivables is extinguished. It is important to know that the term is considered interrupted by any valid enforcement action taken during this period.

 

The deletion of public obligations is made by submitting a formal request to the public executor to the relevant territorial directorate of the NRA. The public executor is required to give a ruling on the request within 7 days. Failure to act within this time limit shall be considered a tacit refusal. The refusal of the public executor may be appealed to the Director of the Territorial Directorate of the NRA, which decides by decision.

 

In case the director of the relevant territorial directorate of the NRA refuses to grant the request for cancellation of public obligations, this decision may be appealed before the respective Administrative Court. The appeal is made through the director who has given the refusal to send the complaint in court. If the appeal is well founded, the court finds that the limitation period has expired and the public claim is not enforceable. By the same decision, the court gives obligatory instructions to the public executor to write off the enforced period of prescription. The decision of the administrative court is final and is not subject to subsequent appeal.

 

It should also be known that the law also provides for a 10-year absolute limitation period, upon the expiry of which the public liabilities payable are extinguished irrespective of the suspension and interruption of the limitation period during that period.

 

The reason given here is to remind taxpayers that, besides obligations, they also have rights that they should exercise and protect in order to avoid unnecessary and unjustified impairment of their legitimate interests.