Russian newspaper Kommersant reports on decisions made by Russian courts regarding appeals submitted by Belarusian taxpayers.
In a notable development, Belarusian tax authorities have been turning to Russian courts to recover debts, particularly from individuals who are both Belarusian and Russian citizens. This trend is attributed to the migration of debtors and their assets to Russia.
Six out of seven times, Russian courts have validated the claims of Belarusian inspectors, deeming them valid based on bilateral agreements between the countries. However, in one instance, a claim was rejected due to the expiration of the three-year deadline for enforcing the decision.
The enforcement process in Belarus involves bailiffs who execute these decisions. A party dissatisfied with bailiff actions or inactions may file a complaint within 10 days, initially to the head of the enforcement authority, and, if unsatisfied, escalate the complaint to a court.
Russian courts consider several factors when making decisions involving Belarusian debts and enforcement actions. These include the recognition and enforceability of foreign judgments, the priority and nature of claims as defined under Belarusian enforcement rules, and international sanctions and restrictions related to Russia and Belarus.
Belarusian tax authorities enforce collections with a six-tier priority queue for recovering debts. The priority queues, starting with obligatory payments like alimony and child maintenance, and proceeding through employee wages, social insurance contributions, obligations secured by collateral, budget debts, and other payments, ensure that the most critical payments are made first when the debtor's resources are insufficient.
The overall trend suggests that Belarusian authorities are eager to reach the assets of debtors whose whereabouts have been traced to Russia. Notably, Russian courts have requested information about debtors and their assets from the Federal Tax Service (FNS), Rosreestr, and the Ministry of Internal Affairs (MVD) of Russia.
This proactive tracking of debtors' property abroad by Belarusian tax authorities has been a contributing factor to the increase in cases. It is also worth noting that foreign tax authorities from countries like Uzbekistan, Kazakhstan, and Kyrgyzstan have approached Russian courts to recognise and enforce debt collection decisions in Russia.
One significant case involves the amount sought under subsidiary liability, which is €8.9 million of the debt of the bankrupt Osipovichi Railcar Plant. Russian courts have examined whether there are grounds for refusing to recognise and enforce Belarusian court decisions in such cases.
In conclusion, the practice of Belarusian tax authorities using Russian courts to recover debts from individuals, both Belarusian and Russian citizens, continues. The consistent recognition of Belarusian tax inspectors' claims by Russian courts underscores the effectiveness of this approach. However, it is essential to consider the legal complexities and international sanctions that can impact enforcement decisions.
- In light of the consistent recognition of Belarusian tax inspectors' claims by Russian courts, it seems that the Belarusian business sector is actively using Russian courts to recover debts from both Belarusian and Russian citizens, which may be a result of the migration of debtors and their assets to Russia.
- As foreign tax authorities from countries like Uzbekistan, Kazakhstan, and Kyrgyzstan have approached Russian courts to recognize and enforce debt collection decisions in Russia, it is evident that the financial business relationships between these countries are becoming increasingly interconnected, with Russian courts playing a crucial role in resolving cross-border debt disputes.
