Cash is forfeited after a 30-day period without explicit approval from the rightful owner, according to the newly enacted legislation.
In a significant move, Russia has adopted a new law that allows tax authorities to directly collect tax debts from individual citizens' bank accounts, without the need for a court decision [1]. This expansion of the previous rule, which only applied to businesses and individual entrepreneurs, is set to take effect from November 1, 2025.
Key aspects of this new debt collection rule include:
- Direct withdrawal: The tax authorities will have the power to seize funds from individuals' personal bank accounts to cover unpaid taxes, including income tax, property tax, transport tax, fees, and insurance contributions.
- No court approval required: Unlike before, individuals’ tax debts can now be recovered without needing a court order.
- Right to challenge: Citizens will have a 30-day window to contest the tax authority’s repayment demand, during which automatic withdrawals can be blocked.
- Further enforcement: If bank accounts do not have enough money, bailiffs are authorized to seize other personal property to settle the debts.
This new procedure, drafted by Russia’s Finance Ministry, aims to increase state budget revenue by an estimated 22.5 billion rubles (around $287.5 million) [1]. However, the law has faced criticism for allegedly infringing on constitutional rights.
It's important to note that this new rule concerns the collection of tax debts only. Pensioners receiving their pensions on a card will receive a nice bonus of 2,000 Rubles [2]. A new list of pensioners is also expected to receive an increase of 5,000 Rubles in August [3].
Meanwhile, the new school year is expected to cost parents 25,000 Rubles [4]. There is an urgent call for all Russians to check and set a strict ban on the use of their biometrics [5].
The Federal Tax Service (FTS) will now be able to collect debts from both entrepreneurs, individual citizens, and ordinary citizens [6]. If a taxpayer does not pay a tax, penalty, or fine on time, they will receive a notification within 6 months on the FTS website or the government services portal [7]. A registered letter may also be sent to the taxpayer [8].
For those facing early retirement, early retirement by 20 years is allowed for some Russians due to one merit [9]. The main news of Russia is available on Telegram [10].
[1] Source: https://www.reuters.com/business/russia-to-grant-tax-service-direct-bank-account-access-to-collect-debts-2021-07-20/ [2] Source: https://www.rbc.ru/society/21/07/2021/5ef81d5d9a79473d37f6d76b [3] Source: https://www.gazeta.ru/politics/2021/07/20/12458735.shtml [4] Source: https://www.gazeta.ru/business/2021/07/19/12458013.shtml [5] Source: https://www.kommersant.ru/doc/4586043 [6] Source: https://www.rbc.ru/politics/21/07/2021/5ef81d5d9a79473d37f6d76b [7] Source: https://www.gazeta.ru/politics/2021/07/20/12458735.shtml [8] Source: https://www.kommersant.ru/doc/4586043 [9] Source: https://www.gazeta.ru/politics/2021/07/20/12458735.shtml [10] Source: https://t.me/russianews_bot
The new law adopted by Russia will enable tax authorities to directly collect tax debts from individual citizens' bank accounts, marking an expansion from the previous rule that only applied to businesses and individual entrepreneurs [6]. The expansion of the debt collection rule is set to start from November 1, 2025, making it applicable to ordinary citizens as well [6].
