Tax News Reporter - Week Ended 29 October 1996
According to the State Duma, the priority order for bank transfers in case of insufficient funds on a particular account set out in art. 855 of the Civil Code overrules tax and financial legislation and is therefore also applicable to tax or other payments due to the budget. A letter of 22 August 1996 of the State Tax Service, the Ministry of Finance and the Central Bank stated the contrary position, that tax payments have priority over all other payments. This is considered by the Duma as a "gross violation of the Civil Code" by these authorities.
Regulation of the State Duma of 11 October 1996 No. 682-II GD
For further information contact Bauke van der Meer on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Click Contact Link or enter a text search 'Coopers & Lybrand' and 'Business Monitor'
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
According to the State Duma, the priority order for bank transfers in case of insufficient funds on a particular account set out in art. 855 of the Civil Code overrules tax and financial legislation and is therefore also applicable to tax or other payments due to the budget. A letter of 22 August 1996 of the State Tax Service, the Ministry of Finance and the Central Bank stated the contrary position, that tax payments have priority over all other payments. This is considered by the Duma as a "gross violation of the Civil Code" by these authorities.
Regulation of the State Duma of 11 October 1996 No. 682-II GD
For further information contact Bauke van der Meer on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Click Contact Link or enter a text search 'Coopers & Lybrand' and 'Business Monitor'
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
