Tax Alert – Changes to the Tax and Social Security Procedure Code 2016 (EN)
No statutory obligation of the tax authorities to hand-over a request for voluntary payment
Before the changes to the Code, prior to the start up of execution proceedings, the competent authority at the NAR was obliged to send to the liable person an official formal invitation for voluntary payment of the obligations within a 7-day term as of its receipt. As of 1st January 2016, if the public liability has not been paid within the statutory terms, before staring the execution proceedings the competent tax authorities may notify the liable person in writing, via a telephone call, via e-mail or by making a visit at place, or in any other proper way, for the consequences of the non-payment.
Thus, without the obligation for handing over to the liable persons an official invitation for voluntary payment, the time period in which they could react and pay the outstanding amounts before the start up of the execution proceedings, is practically shortened.
Optimization of the procedure for imposition of a distraint on company shares
The distraint on company shares shall be effectuated by sending a destraint notice to the Registry Agency. The distraint shall be registered according to the requirements for registration of a pledge on company shares and shall come into effect as of the date of registration with the Trade Register at the Registry Agency. Prior to the changes, the distraint notice was sent to the company and came into effect as of the date of its receipt.
Suspension of execution proceedings in specific cases
A suspension of the execution proceedings would be possible if, until the date of the public sale of the respective movables or immovable property, or until the deadline for submission of bids in case of sealed bid auction, the debtor makes a deposit of 20% of the liabilities and is obliged in writing to make monthly payments to the competent administrative authority amounting to 20% of the liabilities. This new possibility is aiming to allow the debtor to keep his property subject to execution.
Optimization of the execution proceedings rules
Upon sale of immovables separately or as a group, transfer of real estate rights, motor vehicles, vessels or aircrafts, as well as upon sale of movables with initial price over BGN 5000, a tender should be conducted for the purposes of the sale, etc.
This Tax Alert has been prepared by DELCHEV & PARTNERS for information purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Readers should not act upon this without seeking professional counsel.