Court to Consider Business Objections to Account Blocking

The law ZRU-1183 amends articles 111 and 112 of the Tax Code, as well as the Economic Procedural Code. The decision to suspend operations is made by the head of the tax authority or their deputy. If the taxpayer or tax agent disagrees, the tax authority is obliged to apply to the economic court with a statement within three days of receiving the objection. Until the court's decision, operations on the accounts remain suspended.

The tax authority must attach evidence of the violation that was the basis for the blocking, confirmation that the taxpayer was sent a notification, and their objection to the application.

If the court refuses to suspend, the restriction is lifted from the day the decision enters into force. The tax authority also cancels its decision when the taxpayer eliminates the circumstances that served as the basis. These include failure to submit financial or tax reports within 10 days after the deadline, failure to provide explanations or corrections at the request of the tax authority following a desk audit, non-admission of inspectors to the territory or premises, and the absence of the taxpayer at the declared address.

Previously, heads of tax authorities and their deputies could suspend operations for up to 10 days, and a longer blockade was decided by the court at the request of the tax authority. The Legislative Chamber adopted the document in three readings in April, and the Senate approved it in August. The law enters into force on the day of its official publication.