Write-off of tax debt

We continue to talk about tax debt. In this article, we will discuss how and under what conditions the tax authorities can write off a tax debt.

What debts can be written off?

Fiscals can only understand and forgive, or rather write off, a bad tax debt.
Uncollectible tax debt includes:

• debts of a bankrupt payer who is unable to fulfill claims due to lack of property;
• debts of payers that are being liquidated and their property is not sufficient to repay their debts;
• debts of an individual who has died and whose property is not enough to repay the debts;
• debts for which the collection period exceeded 1095 days and were not claimed by the tax authorities under the enforcement procedure;
• debts arising from force majeure, subject to a certificate from the Ukrainian Chamber of Commerce and Industry;
• debts of taxpayers in respect of which the court has decided to terminate.

A bad debt of an individual includes:

• the debt of a person who has been recognized as incapacitated, missing or deceased, and whose property is not sufficient to repay the debt;
• the debt of a person who has been wanted for more than 720 days.

How is the debt written off?

However, the write-off cannot take place without a corresponding decision of the head of the tax service in Kyiv or the Office of Large Taxpayers.

After making such a decision, tax inspectors withdraw the documents that accrued fines, penalties and bad debts.

The debtor does not need to apply to the tax authorities, the head of the fiscal service decides to write off bad debts independently.

However, if for some reason your bad tax debt has not been written off, although it should have been, then you can:

• contact the tax office in writing and remind them of the write-off, attaching supporting documents;
• to go to court.

After the tax authorities decide to write off your debt, you will receive a written decision.

In the next article, we will talk about the consequences of the unified social tax debt.