The Tax Service will be able to collect debts without going to court: how will this change affect Russians?

Since November, tax authorities have been authorized to collect mandatory payment arrears from citizens out of court. This new procedure applies to: taxes reflected in the 3-NDFL tax return; transport and property taxes; and obligations under notarized transactions (loans, credits, and receipts). How does the out-of-court debt collection procedure work, who will be affected, and what amounts are involved? MK spoke with experts about all this.

Until November, individuals could only recover tax arrears through legal proceedings. To collect additional assessments, the tax inspectorate required a court order or decision. Now, however, debt collection through legal proceedings is only possible if there is a dispute over the assessed amounts. If taxpayers incur arrears in personal income tax, professional income tax, property taxes (transport, land, and real estate), penalties, and fines, the Federal Tax Service has the right to initiate extrajudicial collection proceedings. The tax service sends the demand directly to the debtor—through their personal account on the Federal Tax Service website, the State Services portal, or by registered mail. If the individual disagrees with the amount of the tax claim and files an objection with the inspectorate, the extrajudicial collection process is suspended. The Federal Tax Service then has the right to file a lawsuit.

MK asked experts – specialists in financial matters – to comment on the legislative innovation.

Andrey Loboda, economist and top manager in financial communications:

"Expanding the Federal Tax Service's authority over debt collection reflects a commitment to digitalization and simplified administration. However, this also poses risks for taxpayers. While out-of-court proceedings will expedite the collection of obvious debts, they can lead to disputes if the taxpayer fails to respond to the notice or disagrees with the assessment. Therefore, it is especially important that the notification system operates smoothly, and that people actually receive messages in their personal accounts.

Going forward, this initiative will increase tax collection and reduce the burden on the courts, but it will require clear guarantees for the protection of citizens' rights. For it to be effective, it is important to provide a transparent appeals mechanism and the ability to promptly restore rights in the event of errors. The balance between the speed of collection and the legal security of taxpayers will be a key indicator of the new system's effectiveness."

Elman Mekhtiev, CEO of the Association for the Development of Financial Literacy:

"Out-of-court debt write-offs will only occur 30 days after notification of overdue tax arrears. This gives citizens ample time to appeal any such accrued amount (provided, of course, they have proof of their case). This procedure will not lead to a hidden price increase on goods, as we are dealing with unpaid taxes, which must be factored into pricing, like any other tax, from the outset. Prices may only increase for those businesses that knowingly violate the law. To protect their savings on cards from being erroneously debited by the tax service, ordinary consumers should regularly check their personal account or the FTS mobile app. This is the best way."

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