The garnishments will be set on a single bank account, the whole process will be electronic and will take only a few hours, without unnecessarily harm the company’s activity.
Currently, the tax authorities transmit the writ of execution to all banks where the debtor has accounts and, in practice, there are serious repercussions. One of the biggest problems is that the tax authority has the right to establish garnishment of all the debtor’s accounts. Although the bank is obliged to freeze the amounts provided in the writ of execution, there were many cases where larger amounts were retained, mainly because of the garnishment of multiple accounts simultaneously.
Another problem is that although the law provides a five days term for the authorities to return the amount detained in addition to debit, in fact, procedures may last several weeks, often, debtors being forced to present personally to the bank to solve this situation. The prior communication is, also, difficult, as the authorities do not send, each time, the summons with 30 days in advance as required by law.
We draw attention to the inadequacies between tax authorities and taxpayers caused by errors or failure to register all the payments by the authorities may lead to the imposition of enforceable titles and thus to unnecessary inconveniences for companies.
What is going to change?
The garnishment the bank accounts will apply in real time through the electronic exchange of information and documents between the tax administration and credit institutions to which the taxpayers have bank accounts.
Thus, the deficiencies related to delay the lifting of garnishment of bank accounts will be removed.
The garnishment will apply only to amounts provided in the writ of enforcement by the authorities and not all amounts from all the accounts of all the banks. The banks will pay the amount needed to cover the debt, thus avoiding garnishment of additional sums.
Unblocking the bank accounts
Bank accounts will be unblocked in a few hours if the tax receivables are covered. Now, the garnishment procedure takes time as the tax authorities send the writ of execution to all banks where the debtors have accounts. Communication takes place by mail and decision to unblock the account may reach the bank after at least 10 days. In the meantime all taxpayer accounts remain blocked.
Disclaimer: The measures are part of a legislative package amending the Fiscal Procedure Code, but not yet in force.
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